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NETE: Charts Like This Don’t Come Along Every Day

I’m gonna try to make this brief…I don’t know how this one escaped my scanner, but thank God for the trading community on Twitter. I just discovered Net Element, Inc. (NASDAQ: NEAT) by way of a tweet sent out by Trader’s Toolbox today (Wednesday 3/25/15). The chart for this stock is absolutely RIDONKULOUS. You simply don’t see setups like this every day. Check it out:

Chart for Net Element, Inc. (NETE)
NETE price chart…note the 3 months of accumulation.

From roughly mid-December of last year until now, NETE has been trading in a relatively tight range, mostly trading between 1.00-1.40-ish. We’re talking three solid months of trading in this tight range, with mostly quiet volume; you really can’t ask for better in terms of a favorable setup. This is like flopping a full house, Aces over Kings, in Texas Holdem. Sure, someone could knock you out with four of a kind, but you can be pretty doggone confident with a hand like that. I see NETE the same way. Could it all crap out tomorrow? Yes…this can and does happen. However, based on this very favorable price action, I don’t see crapping out as a likely scenario. If NETE can muster a 1.44 break, you might as well hang it up…I see it going significantly higher. I’m sure there’s plenty of buy stops lingering right above that 1.44-1.45 level that could spike this bad boy in short order. On a 1.44 break, my guess is that this one goes at least to 2.00-2.50. Current price for this stock is 1.2699.

Always remember that the length of the base will determine the height of the rise. NETE has 3 months’ worth of solid accumulation right now, and today’s perk may be the beginning of a significant move. Again, ANYTHING CAN HAPPEN, and I’m not recommending anything; I’m simply calling this a highly favorable setup with very little downside risk in my humble opinion. As with all penny stock trades, time will tell. That’s it.