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Jeff Williams, lead trader at PennyPro.com, says that the chart on Cool Technologies Inc. (WARM) is showing a bullish flag pattern, and that the last time this penny stock showed a similar pattern in the same price range, it took off to be a big gainer. With that in mind, he has purchased the stock at 8 cents per share, expecting it to at least get past the 200-day moving average of 11 cents, with the possibility that it goes into the high teens. With a stop set at the stock’s 50-day average of 7 cents per share, Williams noted that the risk-reward profile makes the trade particularly attractive.

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Jeff Williams is the lead trader of PennyPro.com. He is a short-term trader of stocks under $10 a share. At the time this interview was taped, he had purchased 35,000 shares of WARM on Sept. 13 at 8 cents per share and was planning to trade those shares as described in the interview. He had no additional shares, options or open orders in the stock. The Raging Bull podcast features experts from the site talking with Raging Bull editor Chuck Jaffe on his show, “Money Life with Chuck Jaffe.” You can learn more about Chuck’s daily hour of market and personal-finance chat at MoneyLifeShow.com; you can subscribe to the Raging Bull podcast via iTunes and other podcast providers.

Author: RagingBull

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