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:
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.