ABK & CIT - Pennant Formation & Dead Trend

Someone asked me to post my analysis & opinion on ABK & CIT, so here it is. These stocks are under $5.00, which should be considered as very speculative stocks. I personally have made it a rule for myself to never purchase stocks priced under $5.00. A weak share price reflects the strength of a company. However some people may be able to take on more risk. This is the type of stocks that can be very volatile, in which even with stop loss orders can cause you at time to incur bigger losses than you may be willing to take.

ABK - WAIT (Break Out Imminent)

We can currently observe a pennant formation with ABK, since the price action is getting narrower and narrower after each session. ABK is currently in an uptrend, therefore we should expect that a break out to the upside is imminent. However on rare occasions the break may happen on the down side. This is why I would only suggest anyone to act on this stock once a break occurs in either direction, either on the long side if it breaks up or short side if it breaks down.


CIT - WAIT

There is not much to say about CIT, it's in what I like to personally call a dead trend. The price action is practically flat, and I see no opportunities either on the long or short side, until a significant move occurs either way. The volume has been continuously decreasing, indicating that there is a loss in interest in this stock. This stock seems to be in a long sleep.