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A Little Blip Up Could Be Good For A Trade

Well, we're coming off our first big win in a while. I find the real low priced stocks can trade up nicely in a market like this, and last Monday's new idea on VRAL with the Tuesday follow up was just the ticket.

That little 2 cent stock cranked all the way up to about .043 before coming back down an settling into the .032 range- still 60% above the .02 entry level. At the top, it gained 115% in two days. We weren't as lucky with POSC, which was only up 20% from the entry level before turning back down and turning lower.

After an extremely ugly November, I'm looking for some stocks that have been clobbered to turn around and head back up. It's turnaround time for some of the penny stocks I have followed, and one very low priced stock looks like it might have hit bottom and be ready to turn back up- particularly in light of today's post close news.

If you're timing is right, you can get some really nice rebounds off of oversold levels.

A look at the chart, combined with a look at the news, suggests there's a bounce afoot on this formerly featured oil and gas play. Read on McDuff.....

Bering Exploration (BERX) From the Nice to Naughty List; Back to Nice?

Sorry for the Christmas metaphor, but I just can't help myself at this time of year. I'm sure many of you remember BERX from earlier in the year. We got two good trades out of the stock when it was nice, then on the third try it turned naughty and we got killed. I lost a substantial amount of capital on that one the third time around, but I don't take it personally.

There's always a bottom, and there's always a rebound in all of these stocks. Sellers run out of stock, and buyers surface looking to take advantage of the low price. Usually, some sort of news is the catalyst.

So, while BERX- the third time around, treated me very badly, I'm hoping the stock can pay me back right now- at least in part.

Today, after the market closed, BERX announced it is already hooking up a 3500 ft pipeline to transmit the natural gas being produced at its Roxanne Field located in Victoria, Texas. The company leased hold in Roxanne consists of 640 acres, has one producing well, and multiple additional drilling targets.

The company expects the pipeline to be completed and operational within 30 days, at which time gas production will begin. 

The Technical Picture- Ripe For a Bounce

It's not a big move, but it could be a precursor to a big move.

As you can see from the chart, BERX is starting to wake up. It's not Rip Van Winkle who slept for 40 years, but the stock has been in steady decline mode for the entire month of November- cut in half over the last 30 days, and looks like it could wake up.

The last few days have seem some slight increases in volume and price, suggesting the sellers are exhausted, and the buyers are stepping back in.

When today's news has an impact on the stock at the open tomorrow, I believe it could trade back to $.20 quite easily. That would be a 61.8% Fibonacci extension off the $.10 bottom.

Therefore, if you can catch it tomorrow morning at $.15 or lower, I believe the stock could easily work its way back to the $.20 level, and the trade would be worth it for a very short term 33% return. If the supply has really dried up, it could get back into the $.25 to $.30 range, but that's very hard to predict.

In the last couple of days, this stock has traded nearly 500,000 shares one day, and over 300,000 shares today. I'd say someone is taking an interest once again, and BERX is very ripe for a long overdue bounce off the bottom.

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