It May Not Feel Ready Yet, but Now's the Time to Take a Swing on IceWEB (IWEB)

So far the brewing recovery effort from IceWEB, Inc. (OTCBB:IWEB) has remained off most traders' radars. That may be about to change, however. That's why you may want to go ahead and take a speculative plunge on IWEB now, on faith that the clues we're seeing now will indeed end up as they're suggesting.

Let's paint the bigger picture first, using the broad brush stroke of the weekly chart. As you can plainly see, the last several months have been miserable for IWEB. Heck, the last four years have been tough for the stock. But, the tide turned - significantly - in early July when shares finally started to make higher highs and higher lows. The bullishness we've seen over the past five weeks is literally the most bullishness we've seen from IceWEB in years.

More important than that, however, is the fact that this perk-up has materialized on decidedly rising volume. In other words, this rally is gathering participants on the way up... the key to any long-lasting bullish move.

There's one more hurdle IceWEB, Inc. will need to clear, however, before the rebound effort is fully underway- a move above the 200-day moving average line (green) at $0.042. It's close, but not there yet.

Waiting for that final confirmation of the IWEB rally, however, presents something of a problem... if you're waiting on that trigger, you're not only leaving money on the table (the 200-day line is $0.07, or 16%, away from the current price for the stock), but you may find yourself chasing the stock after it clears the 200-day moving average line. Odds are good other traders are thinking the same thing, and already have 'buys' programmed for when-and-if IWEB eclipses its 200-day moving average. That rush of buy orders all at the same time could catapult the stock in a hurry, pushing shares beyond what some might consider a good price.

Zooming into a daily chart provides that last bit of reassurance needed to go ahead and take the plunge on IceWEB. Despite Wednesday's opening gap, ever since late June we've seen the stock well supported by key moving average lines.... the 50-day line (purple) in early August, and today and yesterday, the 20-day moving average line (blue). That should be more than enough to keep the rebound effort going when things get tough.

Bottom line? It may not look like much yet, but IWEB has a lot more going for it than the rest of the market realizes. They're slowly figuring it out, which will accelerate the budding bullishness. It maybe worth a shot now, knowing there's a small risk that the stock doesn't actually clear the 2200-day moving average line.

If you'd like to get more trading ideas and analysis like this one, become a subscriber to the daily SmallCap Network e-newsletter. You'll get stock picks, market call, and more every day, FOR FREE!