Could These Stocks Be Headed Higher Today: KFRC, ATLO, UNTD, MDAS

6.39%. That’s how far S&P’s broad market index of Wall Street’s 500 biggest stocks fell last week. It’s a number that gives last week the distinction of being the worst single week loss for the market since October 2008…

The culprit was largely the unrest that’s going on in Greece. As Greek citizens fight the urgent budget cuts the government is making to keep its head fiscally afloat, investors the world around are getting anxious about the prospect that other Eurozone countries could face similar troubles getting their finances in line with reality.

And the euro has taken a shellacking as a result…

To curb the carnage, European finance ministers have approved a big ticket loan guarantee program that’s designed to quell fears that countries – and their sovereign debt obligations – could be left to dry in the near term. Already, it looks like that loan package is set to push markets up in Monday’s pre-market. To make the most of that bullish sentiment with penny stocks, let’s take a look at this week’s technical watchlist…

If you’re new to our format, each week, the Penny Sleuth takes a look at a list of penny stocks that are exhibiting abnormal volume, strong technicals, upcoming news, or another catalyst that suggested they might be making a material move in the coming week.

As usual, while our Watchlist errs on the safe side of small-caps, using technical analysis to tell us where a stock is headed, we’ve opened the comments up to readers again this week, giving you the chance to offer up more speculative penny stock plays.

Check out the comments after this article to get a glimpse at a slew of new user-submitter penny stock picks – and the chance to submit your own!

First, though, let’s take a look at this week’s breakout penny stocks worth watching…

Ames National Corp. (NASDAQ: ATLO) – Small-cap regional banking company Ames National owns a portfolio of five Midwest banks. But for investors, what’s more important are Ames’ sky-high profit margins. And with a bullish inverse head and shoulders pattern forming in the stock right now, there’s plenty of reason to believe that good times are ahead for this stock. Wait for shares to break through shoulder level before going long… then hold on tight.

Kforce (NASDAQ: KFRC) – Staffing company Kforce provides its clients with professionals who work in a bevy of fields. But the past couple of years haven’t been easy for Kforce, given paper-thin margins and a less than appealing job market. Still, shares could soon be forming a bounce off support, so keep a close eye on them this week.

United Online (NASDAQ: UNTD) – Internet services company United Online has expanded its offerings in the past several years, moving from its roots as an low cost ISP to its current portfolio of web properties. Still, this stock looks like it has lower to go. With support all the way down at $6, the downside potential looks pretty good. Watch out for bullish sentiment this week, however. That could derail any hopes for a downside play.

MedAssets (NASDAQ: MDAS) – MedAssets specializes in technology enabled products and services for the medical field. This stock is one of the few trading today that looks primed for a bounce higher off of support. As always, wait for the confirmed bounce before putting your money on the line.

Share Your Penny Stock Picks

Once again, we’re going interactive this week…

Just post your best penny stock pick in the comments section of this week’s Watchlist by Friday, May 14.

Cheers,
Jonas Elmerraji
Managing Editor, Penny Sleuth

May 10, 2010

Could These Stocks Be Headed Higher Today: KFRC, ATLO, UNTD, MDAS was originally featured in the Penny Sleuth. Check out Wall Street’s 5 Most Profitable Penny Stock Patterns Report.

This story was originally featured on Penny Sleuth.

Read the original story at Penny Sleuth :: Jonas Elmerraji