Global ePoint did not gap up dramatically on last nights news as it has in the past. The news apparently wasn’t enough for the market to put the kind of charge in the stock it has on past announcements. Apparently, the market is looking for news of contract signings to make this one run.
As you can see from the chart, GEPT completed a perfect 66% retracement of its meteoric rise back in December. The weak early January market conditions are probably muting the stock’s ability to run up. Today’s failure of the stock to create a huge gap is great news for those looking to accumulate. I believe it should be bought in the $4.50 to $4.75 range for a gap up on the next Homeland Security related contract signing. The $4.50 level is a perfect 50% retracement of December’s gains.