Gediminas Jasionis

The Stock Trading Opportunities Baltia Air Lines, Inc. (OTCBB: BLTA) Provides

by Gediminas Jasionis September 28, 2009
Plane of Baltia Air LinesAs more news surfaced on Baltia Air Lines, Inc. (OTCBB: BLTA or BLTA.OB) it brought attention from investors and so some bolder price actions should be expected as well. Up till now the stock hadn't been advancing at attractive speed, but there still are profitable opportunities occurring.

Latest news said the company will not be able to get in business as fast as they thought. That puts a black mark on their business plan and their stock. In turn the share price should contract, and there are rather clear levels to which the price might move.

A prolonged downwards price channel can now be clearly seen on BLTA's stock chart. With recent news in play the price should to travel down to the lower support level. Although the technical indicators don't yet support this idea, one must bear in mind that this is a penny stock with more noise to it than a highly liquid one.

Recent trading volume on this stock wasn't too strong, but still kept at level twice the average volume. Taking into account the channel that formed over the past nine months we can see the current price contraction should end somewhere at $0.23 level. From there on it will either bounce back up, or take some time and consolidate near the support level.

The price shouldn't fall past the support, as the current behavior suggests the stock is already priced correctly. Baltia's management is slowly moving forward with their plans, and that also keeps the price from falling further. The stock actually looks quite a safe play, as the price will likely stick to the channel until significant news are announced.

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