To OTC Journal Members: 
 

Allied American (AAST) Breakout

I spent the morning reading the technical tea leaves, and I wanted to alert everyone Allied American (OTC BB: AAST)- one of my recent ideas in the commodities sector, technically looks poised to break out.

One never knows about these things for sure, but this one might be on the verge of a pretty big move.

This was the company I started covering last Monday at $1.20. As I write today's edition, the stock is trading at $1.35, and the company released an update on its drilling program.

AAST is Pittsburgh based, and has tied up acreage in Eastern Canada that is likely to have 124 million tons of iron ore and titanium that would take nearly 50 years to extract.

Today, AAST announced it has contracted with a driller to commence advanced exploration within 30 days. I don't need to remind investors we've done pretty well betting on the "Thril of the Drill" as it effects stocks.

Technically, the chart looks pretty darn good. This is a fairly young idea with a very short trading history.

Last Monday when I kicked this one off it was $1.20. It traded up to about $1.35 the first day, then retreated to $1.10 on lighter volume last week for just two days.

Today the stock is back to its all time high- albeit all time for a week, and is trading some pretty nice volume.

If the stock can break through this $1.35 barrier, it might just scamper to my forecast level of $1.50 to $2. It's looking pretty good, so I might just pick some up myself.

If I do, I'll go ahead and file my GTC limit order to sell the stock in the $1.50 plus range in case it trades up and I'm not watching.

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