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Is Viking Systems (OTC:VKNG) Done Running?

Our readers and newsletter subscribers who jumped on Monday's highly recommended Viking Systems (OTC:VKNG) pick saw shares soar early in the day, before some major profit taking took place.

We still feel the stock is still undervalued. Especially pending news.

The forward looking news items are still ahead and from a technical analysis stand point, things still look relatively bullish.

At one point during the trading day, shares were at $1.05 per share- up from Friday's close at $.60.  End of the day gains held at 21.67% and shares closed at $.73.

From a technical standpoint, it's important to note the Golden Cross which was formed on the chart. As some of you may know, moving averages emit important market data, but all of them exhibit one common limitation: They are "lagging indicators" to current events. By the time a 50-day bar average curves upward to confirm a trend, the move is already underway and may even be over.

Multiple moving averages, on the other hand, are often used by technical analysts together in order to overcome many of the flaws of the single variety. They're especially powerful when used in conjunction with price patterns.

In addition to all the other things this stock has going for it, the chart below shows us something called the "Golden Cross." Technical analysts feel that the Golden Cross indicates a bull market on the horizon and is reinforced by high trading volumes (which was definitely the case today, take a look at that volume).

Additionally, the long-term moving average becomes the new support level in the rising market. So even if tomorrow the stock trades down a bit or starts trading sideways for a bit, the sentiment here is still very bullish.

What needs to happen now is that the price per share needs to rise above the $.78 cent mark. There was some resistance there after the profit takers cashed out.

If this thing runs past $.80 it will likely go on another run and if that happens, don't be surprised to see $1 and beyond again in the short term.