Viking Systems moved Big Today

This post is just a quick heads up that VKNG or Viking Systems Inc moved above what I consider to be very important resistance at .28  I believe this ‘mature’ penny stock is slowly starting to build trend strength for a stage 2 advance that should eventually take it back up to $1.00 range again.  In the near term the .28 level would ideally hold up as new support.

It will probably take a good amount of time to get up there again, but the first key date remains the early October period as I indicated in my previous post on biotech equipment company.

VKNG can have a somewhat spotty trading style but it is important to keep the larger chart structure in mind which is a huge sign of strength from .005 to $1 range, then a long saucer bottom type formation of 3/4 of a year in length.

The best setups are those that evolve from very large patterns and show clues and signs of strength within.  I can name you plenty of penny stocks that move big every day but which ones have some real ‘meat’ behind them ?  That consideration is one of the most important ones to consider in this volatile sector.

The VKNG setup is quite rare in my opinion but it will probably take a good amount of patience to see it play out fully.

The volume was robust today but still not of the level I would expect to see for the start of a mega move.  Keep in mind that the previous run of .005 to $1 only took about 15 trading days.

We are still almost 2 full months away from early October and also still in the low volume trading month of August.  So I suspect there will still be some games being played for a while in this stock.  But September 2010 should be a much different story.