Viking Systems shows a Major Sign of Strength Today

I previous gave Viking Systems Inc. VKNG a penny stocks penny stocks rating of 1, our highest and most favorable rating.  VKNG is not the typical penny stock in that it trades in the .30 to .40 cent range, but does it really matter what price a penny stock is if the longer term price chart setup still says there are potentially huge gains to be had ?

To me it makes no difference.  Some would probably only like to identify .005 to .10 cent penny stocks trading on the pink sheets or OTC BB.  Surely there are plenty of setups in that space with LBSR being a recent outstanding example of one.

But there are also a huge number of low priced stocks that START from the .20 cent range that can still do amazing upside runs especially if the longer term chart is very favorable.  VKNG is an OTC BB stock that actually has the potential to make some serious money if management can execute and position their 3D HD minimally invasive surgical system to eager buyers.  The price range for their product is near $100,000 each and so you can see how just a few sales can start to add to the bottom line.  The product launch is early October 2010, and the then the last quarter of this year.  Basically this company is transitioning from a development stage level to ‘real company’ level if they line their ducks up correctly.

I feel strongly that the long term penny stock price chart of VKNG is as attractive or even more attractive than the price chart of LBSR.  They are similar in that they both have good bases and large tradeable voids on the left side of the chart.  Stocks that make the biggest runs often times have large tradeable voids on the left side of the chart after having formed long bases.

VKNG today did a huge surge on big volume today. It was a gap opening and a spike high that is confirming the recent uptrend.  I feel that VKNG will trade higher into the end of the year as a longer term position type trade.  I already did a write up over at BestOnlineTrades and you are welcome to read that and see the weekly price chart which looks outstanding to me from a bullish viewpoint.

VKNG is not a good entry right now. I plan to accumulate on any dips in the weeks ahead, but I am unsure at this point whether or not the large opening gap will be filled or not.  I suspect it will in the weeks ahead which would create an ideal entry point.  Buying on a spike high is usually never a good idea.  Usually the stock calms down and settles into a range before the next leg up.

Because VKNG has a low float it tends to trade in the form of spike highs and then extended bases. It is a peculiar trading pattern and takes a little getting used to.

I see potential for VKNG to get above 1.00 range and even into the 3 and 7 dollar range within a 1 to 1.5 year time frame.