TLAN - Reversing Course

After hitting highs not seen since early last year, TLAN has pulled back creating an excellent opportunity for investors to get back into the stock, or buy it for the first time. The stock fell toward the end of the session today, but was able to muster a green close on some light buying.

Looking at the chart TLAN is showing a bullish hammer reversal pattern.

The Bullish Hammer Pattern is a significant candlestick that occurs at the bottom of a trend or during a downtrend and it is called a hammer since it is hammering out a bottom. The Bullish Hammer Pattern is a single candlestick pattern and it has a strong similarity to the Bullish Dragonfly Doji Pattern. In the case of Bullish Dragonfly Doji Pattern, the opening and closing prices are identical whereas the Bullish Hammer Pattern has a small real body at the upper end of the trading range. (SOURCE)

I think this bodes well for this stock going forward. Today we tried to test support, and ended up getting some decent momentum into the close. It's also become clear that there are not many willing to part with their shares, and that today's volume was mostly market maker AUTO, who continues to test the bid as well as the mettle of TLAN's investors. With a close 2 ticks into the green, it certainly is a good start.

TLAN's float was recently reduced by over 11.5 million shares. For a stock that only trades a few million shares a day, this is a big figure. In the company's latest quarterly report they showed a loss of only $15k on revenue well over $1,000,000. I think they will report a profitable quarter very soon.

TLAN shares were recently valued at $.05 for an acquisition, which shows just how undervalued the company's shares are.

I think we will see the resumption of the uptrend and a test and break of recent highs. I suggest you keep TLAN on your watch list for the foreseeable future.