LUNL, BMBM & Today’s Extended Watchlist

Lumonall, Inc. LUNL

Despite a flat finish yesterday, LUNL managed a high of .0034. This stock first appeared on our extended watchlist on Monday, after which we saw a low of .0016, which, to yesterday’s peak price represents a gain of 113%

It has maintained higher lows and reached higher highs since we started covering it, as well as consistently trading higher-than-average volume.


BMB Munai, Inc. BMBM

We wanted to highlight BMBM this morning, as a dead-cat bounce play that is just coming off of its 52-week low. As recently as August-September, it ran from low .20’s to .314.

On Halloween, the stock experienced a huge gap-down; trading at .31 on the 26th. The markets were then re-opened in the wake of Hurricane Sandy on the 31st, and it opened at .10, falling to a low of .017. After this catastrophic decrease, the stock continued to feel selling pressure until it reached its ultimate low of a penny this past Monday.

We like catching these plays when the bottom falls out suddenly like we’ve seen here. The subsequent recoveries are usually good for some really nice percentage increases as the stock attempts to gain back some of that lost ground. We’re obviously not expecting a return to .30, but a bounce recovering even a fraction of the former value could be a lucrative prospect indeed.

Looking at the chart below, we can see that the Accum/Dist and the RSI are starting to look like they are turning around after a period of being heavily oversold. The PPO also looks like it is setting up for a bullish cross in the sessions ahead, so we definitely want to keep an eye on BMBM heading into next week. The Slow STO has been kissing and it too seems to be gearing up for a cross. We can see that .034 is a recent swing-high, as the stock tried to bounce immediately after the big gap-down; that is where it ran into some resistance, and thus seems like the first major hurdle that needs to be cleared.

Extended Watchlist: