Dow down 300 or 3+%. Nasdaq off 3.5% & ABAT was up over 12% today alone.
My take. I had a $9-$11 target for ABAT by YE and this thing is progressing as I hoped it would. I've got shares at $3.75, some more a hair above $4 and then some at $4.75 & $5.10 earlier this week.
What made me purchase more stock?
1) I saw the MACD weekly curve still nowhere near overbought
2) I saw a daily avg. bullish sign (price was approaching 8 day moving avg, which I expected it to bounce off of
3) Rusell 3000 add on Friday would cause top micro cap funds to purchase the company as they know they have to purchase this stock to keep pace with that index. By not buying "DOGS" they can outperform the index but no one wants to be underindexed on a company that is expereincing huge sales/profit growth. If they want to overindex they might purchase a % higher than the index. I am sure the Russell 3000 announcement is driving quite a bit of this.....and increasing awareness of the company's fundamentals on the street.
My goal....Hopefully $6 tomorrow as the stock went up today on HUGE volume, just like last week......I feel very good about the next few weeks with the stock. At some point it will have to take a break/breather but I am hoping it stays above the 20 day simple moving average the entire time & I would love it if it didn't drop below the 10 day moving average on a closing price basis. Doing that might cause me to lock in some prices.
Given that the company just broke through previous resistance some TA people would say that that $5.60 will now be support area (on any pullbacks) and that the new target is the prvious 52 week high of $9.11. If I do that I'll be partying it up! WOO HOO!
Dan Ross
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