Stock Chart ABAT

Posted by downtowntrader | 7/30/2008 09:50:00 PM | 0 comments »

Stock Chart Analysis ABAT

Advanced Battery Technologies, Inc. (Public, NASDAQ:ABAT)

ABAT has been consolidating a breakout for over a month now and could be close to resuming the prior move. It has held above the prior peaks and most of the volume has been on up days. The all time high is 8.38 and when these small stocks hit new all time highs it can cause nasty short squeezes. This is due to a lot of different reasons, but a big part of it is many of these stocks are heavily sold short because they usually fail. Shorts get it right more often then not, but when a stock is able to push to new all time highs, then EVERY single short is underwater. Of course, any time a large group is caught on the wrong side it can cause fireworks. Of course there is no guarantee the stock ever gets there, but if it can clear this small penant, it could head for at least a retest of the all time high.

Good Trading,


for more analysis, check out