When you look for fresh ideas on where to invest it can pay to consider everything. Leave no stone unturned and look at low-priced names too. When I saw that TheStreet's Quant Ratings upgraded Cemtrex (CETX), I decided to take a look.
In this chart of CETX, above, we can see prices trade sideways with big rallies that temporarily interrupt the neutral trend. But look closer at the price action and indicators in September and prices of CETX double, yes double, in just one month. That can happen with volatile low-priced names and this often attracts some people. What is different about this rally versus the others you can also see is that the On-Balance-Volume (OBV) line spikes up with the price action. However, even when prices settle back down the OBV retains its gains.
What does this say to chartists? It tells me that someone bought or accumulated CETX and continues to hold that position. If the OBV line turned lower I would change my opinion, but right now this new development puts CETX on my radar screen.
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