After five straight days of gains, Portage Resources Inc. (PINK: POTG) fell as low as $.72 (-30%) yesterday and closed down more than 20%. It looked fairly clear that multiple stop losses had been triggered and shares started dumping heavily onto the bid. There could be another play here if you missed the 14% bounce at the end of the day!

Javalution Coffee Co. (PINK: JCOF) had an even worse day as it tanked early in the morning to a low of $.472 (-38%), bounced, and then bled off the rest of the day to close at $.505 for a loss of more than 33%! JCOF announced yesterday that in the merger with Youngevity, it will emerge as AL Global Corp.

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POTG Chart:

• After a month of perpetually riding along the upper bollie, POTG seems to be ready for a possible negative reversal. There could be a bounce off the 20 day moving average so be watchful for that at around $.62!
• The RSI is dropping down out of overbought territory and is moving towards the centerline.
• The MACD is showing a possible death cross, which could me a temporary negative reversal trend excluding more pumps or news.

JCOF Chart:

• This stock has been beautiful since the end of April, but yesterday was a sign that investors are skeptical about the name change. JCOF needs to hold support at $.47 or it will drop a good bit lower here.
• The RSI is plummeting into the oversold territory, so this massacre may not be too long.
• The MACD had a death cross a couple weeks ago that signaled the negative reversal and the positive line plummeted with yesterday’s trading.

The Bottom Line

POTG and JCOF have both had incredible runs, but now they are both losing ground. However, I will be watching for bounces on both in the near future! The question is, how long will I hold them after I buy some shares on the bid? The short answer, it depends on how they look, but probably not incredibly long.

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Good Luck,

Ian Decker

Disclosure: No position

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