Looking for a couple of near-term trades that have a decent shot at rallying even if the broad market feels like it might pull back? Then take a look at Liquidmetal Technologies Inc. (OTCBB:LQMT) and NanoTech Entertainment, Inc. (OTCMKTS:NTEK). Although both LQMT and NTEK will be dismissed by some traders simply because they're OTC-listed stocks, for those traders willing to look past the exchange and appreciate the opportunity, the risk-versus-reward ratio is actually quite compelling.
For NTEK, the budding breakout actually has its roots in something that happened in early June. That's when NanoTech Entertainment shares broke above a falling resistance line that had been in place since late-2013. What's only evident on the daily chart (not shows) is how the stock pushed above the 100-day moving average line on Thursday, and put some distance between itself and the 100-day average today. It's the first time in months the stock's been above the 100-day line. The next big hurdle - not that one would need to wait to see it cleared before getting into NTEK - is the 200-day moving average line at $0.1016, Interestingly the reason the surge from late June crumbled so early one was the brush with the 200-day average line then, although the fact that the stock carried the rally so far, so fast, the surge didn't have much of a chance of lasting.
As the name suggests, NanoTech Entertainment makes entertainment technologies, ranging from gaming software to 3D advertising to IPTV hardware to coin-operated casino games, and more. Revenue has been growing rapidly for the past couple of quarters, and incredibly enough, the tine company is profitable.
As for Liquidmetal Technologies, though it too is in the shadow of a breakout (from a long-term pullback) that began in late May, it's only been today that LQMT has really sealed the deal. With today's push, shares are on the rise again, overcoming the slide from the initial breakout thrust. If the bears were going to fling this chart back into a downtrend, they would have done so. Today's bullish bump verifies the bulls are truly in charge here, even of erratically.
Liquidmetal Technologies has developed technologies that allow for ultra-tough coatings for a variety of instruments and devices, including cell phones, medical devices, and more. In fact, some of its materials can be used not just to coat, but to act as a hard material itself. Sales have been nil for over a year now, but there's a light at the end of the tunnel, and LQMT moves well on hope (even if only temporarily).
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