SmoothJB

$GBS

Long
NASDAQ:GBS   None
Gbs Inc (NASDAQ:GBS) It's becoming apparent investors are slowly starting to catch onto this small undervalued bio stock. I think this recent IPO play is trading at great risk/reward prices. The risk of continued downside, while obviously always a factor to be present, is a lot less than the possibility of a sharp oversold rally or bounce at current prices. Buying stocks at or near their all-time lows, especially ones like these that have not experienced much of a bounce, is a great way in my view to find profitable trades. We've seen very similar charts recently where a stock has fallen so dramatically. In each case, the stock rallied over 50%. If that holds true for GBS it will hit $10 or better on any bounce. As shown on the 30-minutes chart, the stock has broken the primary downtrend line to the upside and found resistance at the 7.50 area, which I pointed out on the chart. Looking ahead, a break of the resistance zone could potentially lead a rapid rise to 8.88. I think this stock is ripe for a short-term big rally.
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