KAT Exploration Inc (KATX)

[Er0ck]

Just wondering where all the charters were today posting their sexy charts all day long that were showing a big up week for us.... ;)

As I have stated many times on here, charts can be quite useful for penny stocks, no doubt about that. But as far as using them to predict the short term trends and long term trends, they tend to be of little use as they are simply too volatile which throws off the charts data and makes them inaccurate. This week once again proves that....

Stocks like this trade almost fully on news. When good news with meat comes out, they go up, spike, then fall back a little bit and establish a range. That is exactly what KATX has done here. It spiked up on good news, then fell back, and found a bottom at .015. It has now traded in a basic range of .015 to .02 with higher spikes due to rumors of possible news and other factors.

This should continue till more news with meat hits. That means there should NOT be any major sell off, at the same time there should not be any major gains either. Once the news hits, assuming it's either the big news we have all been expecting, or it's other news with meat on it, then this will go up nicely, spike, and then fall back a little bit and establish a completely new, much higher range with a completely new bottom. If it's news about a JV, then it will be a MUCH MUCH higher range :)

Also please keep in mind, on great news, this stock tends to move up over the course of 3 or 4 days of trading. So any really good news and there is a good chance that this wont spike in just one day, but continue to move up for a few days. Anyway, keep an eye out for any news from the company and good luck to all!