Can KAT Exploration (Pink: KATX) Continue It’s Monster Run?
Good morning my darlings!
I’m taking a look at KAT Exploration (Pink: KATX) today since it closed up 77% yesterday while hitting highs of over 80% on 20 million in volume. The reason for the ginormous move after laying dormant for a couple of months is that KATX signed a Letter Of Intent to acquire Cacno Energy Corporation, a privately held entity that deals in onshore and offshore drilling in Canada and the U.S.
News courtesy of Yahoo finance: http://finance.yahoo.com/news/kat-exploration-inc-enters-letter-134500572.html
KATX is no stranger to drilling and mining (usually for precious metals), and now with an oil and natural gas company under their belt they have opened up some more potential revenue streams. We at the StockRoach and fans of Jr. mining companies are no strangers to KATX since it used to be one of the hottest stocks to trade last year. Can KATX bring the wins once again for us roaches in 2012?
The chart is looking extremely bullish and I will get to the techs after this reminder:
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Let’s pull up KATX’s EL TORO of a chart: http://stockcharts.com/h-sc/ui?s=KATX&p=D&b=5&g=0&id=p42714611613
As you can see, KATX’s accumulation is through the roof, the RSI is heading towards the trader power zone, and the MACD is just starting to diverge.
Support levels for KATX comes in at .the 50 DMA of .004, with lower level of support coming in at .0032. Resistance comes in at .0055 and .006.
If you’re looking to get in KATX on a pullback I personally would look for an entry around .0035ish give or take a couple of ticks in either direction. Keep in mind that KATX did close strong near the HOD on heavy buying volume even going into the closing bell, so unless there’s a massive wave of profit taking or loss sellers, KATX could just make a run for that golden penny and beyond as it has done in the past.
So put KATX on your watchlists immediately and let’s see how much juice it has left in it.
Senorita “Strong like El Toro” Roachita
This corporate profile is provided for information purposes only and should not
be used as the basis for any investment decision. We are neither licensed nor
qualified to provide investment advice. We were not paid, nor do we hold a
position in this stock. We reserve the right to buy or sell KATX at any time
after this post.
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