IAO - Go Long?

Moniker: DAVID FU
Symbol: IAO
[X] Entry
Duration: Long Term
Direction: Go Long
Comments:

IAO is a holding company in the financial and telecommunications sector. Long stuck in a down trend, it has been building a base now for 6 years trading in a large channel from .10cents to .50cents. Here's a weekly chart. There are good things to say about the chart. A long term down trend line has clearly been broken and there are good buy bars over the past couple weeks on a weekly basis. The problem is that it's still in the channel. Since you are thinking long term, the ideal purchase area would be a drift back to the .25cent area. .24cents was the low on a high volume bar push higher. you can use .20cents as your stop out.

Note that these very low priced stocks have very a high beta and the risk of stop out is greater. You either have to use a limit stop or watch it closely off and on during the trading day.