Playing this on pure technicalsFor you penny players here's one that is coming off of its 52 week lows. Its a gold producer who's stock price has been beaten down this year and had been averaging the mid 40 cents for the latter part of last year. Weekly chart is showing us it is coming out of an extended period in the oversold area with both RSI and Slow Stoch's moving up. Its 200SMA line on the weekly is at a whopping .58 giving it tons of upwards possibilities and has minor resistance at .30 and .35 levels.
On the daily chart we see that there's past resistance at the red horizontal line. This resistance was bottom in December of 2008 and is minor resistance here I think. The real resistance here will be the recent support level it had set during the May-July timeframe. This is our first real target. So from today's close at .19 our first target is .23 for potential gains of 21% and its next target is the .30 resistance which would give us a sweet 57.8% gain.
We have the 200SMA overhead and could cause some resistance point as the stock price nears there. But we'll worry about that when we get there!
Follow link for chart.