To OTC Journal Members:

Today's action in shares of Blue Zone (NASDAQ: BLZN) was very technically very bullish, and suggests the stock could be header for higher levels in the near future.
 

Monday's Volume Surge

Those of you that read the weekend edition know, in our opinion, last Friday's volume surge in the stock could have signalled the beginning of another move to the upside. We were not disappointed in today's action, and believe that this could be a good week for shares of Blue Zone.

On Friday Blue Zone closed at $5.875 on 118,300 shares, a substantial volume increase over the 30,000 shares it had been averaging over the previous two weeks.

Today was considerably more prolific. Blue Zone closed at $6.31 today for a 7.4% gain over Friday's close. More importantly, the stock traded 578,200 shares, the highest volume day of this year.

Blue Zone opened at $6.375 today, traded as high as $6.50, and then spent most of the trading session hovering near $6. Towards the end of the day another volume surge took the stock higher, which technically bodes well for another gap on the open tomorrow.

The stock also closed above its 50 day Moving Average ($6.20) on huge volume, which is considered a technically bullish sign. Today's activity probably went a long way towards taking out the overhead resistance in this stock, which positions us for another move up.
 

Future Possibilities

As you know from our weekend edition this stock made a surge from these levels to over $9 in July. We believe that the same scenario could be in place now.

In July when the stock surged it was trading on the OTC Bulletin Board. The stock made its way over $9 on the day the company opened for trading on the NASDAQ National Market System, which means it now trades on the same level with NASDAQ giants Microsoft, Intel, and Cisco. The volume surge today is bound to be picked up by fund managers and investors that would not consider investing in a Bulletin Board stock. The move to the NASDAQ opens a whole new audience for the stock. This stock is also marginable now.

If you like the Company and are looking for a good entry level for this stock please review the Rules For Successful MicroCap Investing Section on our site, or just click here to get to it. If you invested in the stock today and took the time to read the simple trading rules you would not have paid $6.50. You should have picked it up mid morning for $6, and are now starting to enjoy profits on paper.

We are not technicians when it comes to analyzing stocks. We are more concerned with the company's fundamental progress. We did consult an accomplished market technician. He confirmed a close above the 50 Day Moving Average on this volume is a very bullish sign, and could lead to a more significant price break out.

We believe that the company will need to produce substantive fundamental developments to keep the momentum going. Since we don't have a crystal ball we don't know if news is imminent. If we are lucky enough to see major news in the coming weeks shareholders could have a nice ride. Time will tell, and a little luck would help.
 

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SSP Management, the former owner of the OTC Journal, has been paid a fee of $50,000 by The Investor Relations Group acting on behalf of Blue Zone for one year of representation.

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