Hello everyone and welcome to a profitable week in the world of penny stocks and the overall stock market. As was suggested by the previous post, we were testing the support levels of a longer term channel in the TSX. In most cases the support and resistance levels will be confirmed and the trend will continue which is why I was sufficiently confident that the same would follow this time around. That being said, it only take one or two bad days of economic reports to fundamentally change the market and the support level can be taken out and we’re on a whole new trading game, which is why it’s important to keep an eye on the news as well as the technicals.

Two stocks that are going to be mentioned today are MAA.TO and WPX.TO.
MagIndustries was featured on this blog several times with respect to a deal with SinoHydro. Ultimately this deal fell through and the stock was punished. It had recovered some and bounced around until this week it announced another deal of sorts with COMPLANT, another Chinese company. See more here. This brought about a 10% gain in the stock price, and will be sure to have our eye on this one again until the June/July timeframe when more significant news is expected.

Western Potash Corp (WPX) announced today some new resource estimates that brought about an 8.5% gain in today’s price with some heavy volumes traded as well. This is good long term news for the company. They are in a good region and continue to be one to watch.

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