Rino Shaping Its First Base Over $12 Level

• Paul Whitfield
• On 5:29 pm EDT, Tuesday September 22, 2009

When the market uptrend began in March, China-based Rino International was a $2 stock.

It also was thinly traded, moving about 2,100 shares daily.

Yet, the maker of environmental protection equipment took off. It reclaimed its 10-week moving average in April and passed the $12 mark in July.

Even as it made new highs, it remained a low-priced stock.

In August, it hit a high of 17.75.

Before we go further, let's deal with an objection. Some look at this and say IBD missed a move of 788%.

The miss is deliberate. The disciplined investor ignores such phenomenal "opportunities" because the odds are stacked against you. The state lottery has a winner every day, but that doesn't alter the odds.

And thinly traded, $2 stocks involve remote chances of winning compared to quality stocks, IBD research shows.

Now, however, Rino has become interesting to the disciplined investor. It has shaped a base that is a few days short of seven weeks.

Daily volume is a respectable 500,000 plus. The Relative Strength line turned up, although it is still below new high ground.

As Rino based, it found support at the 10-week line. Trading, however, is on the loose side, and the stock could use more accumulation.

Buzz up!