Breakout or Fakeout? A look at BQI
Chart of small cap stock "Oilsands Quest" on the chopping block.
By James E. Brumley
Published: Monday, April 5, 2010 @ 1:56 PM PDT
After putting Oilsands Quest Inc. (AMEX:BQI) on my bullish pick list a few weeks ago, I (along with many of you) gradually lost interest and the stock went nowhere [the market lost interest in BQI as well, judging from the tepid volume we saw for most of March]. Today, I'm putting the stock back on the table as a breakout candidate.
The line in the sand for BQI was $0.82.... close to the highs from when I first expected a bounce off support at $0.66, and the ceiling in mid-March. It also happens to be where Oilsands Quest found support last July, adding to its importance as a make/break line now. Well, as of today, this small cap stock's close $0.83 has cleared the ceiling. A little higher volume sealed the deal.
I still expect some volatility for Oilsands Quest Inc. going forward, though the crack today will make it easier for some of that gyration to move it higher. Frankly though, I think I'd wait for a dip and step into this stock on the next swing above $0.82 (or at least set up a base above $0.82). Call me chicken, but I don't get paid any extra to survive volatility.