Take the Liquidmetal Technologies Hint at Face Value (LQMT)

With just a quick glance at its chart, Liquidmetal Technologies Inc. (OTCBB:LQMT) looks like little more than a tangled, indecisive mess. As you take a longer look at LQMT chart though, a modest bullish hint starts to appear. This may be one of the budding superstar stocks for Q4.

For those unfamiliar with LQMT, the odd name isn't a misnomer. Liquidmetal Technologies has developed coating technologies that are applied as a liquid, but when dry, become as hard as metal. The alloy can be used to coat armor-piercing bullets, golf clubs, medical instruments, and thousands of other items where a high-endurance coating would make it a higher-quality good. The company's claim to fame, however, is the rumor that the liquid alloy technology is being used to encase Apple's newest iPhones. That rumor was driven by an Apple design patent made public back on July 17th, and the stock jumped accordingly.

As is so often the case, however, there was no encore bullishness for LQMT. Shares jumped from $0.06 to $0.20, as the market priced in the best case scenario all in one shot. Since then, shares have done nothing, as there's been no real update on the Apple front.

Sometimes though, you have to trust that the chart is telling you something's coming, rather than telling you something's already happened. And, Liquidmetal Technologies' is subtly saying something big is on the verge of happening.

It's not hard to see either. See the two falling trend lines that tag all of the major highs from LQMT since the mid-July surge. Yeah, well, they stopped acting as a ceiling yesterday, and really failed today. The bullish volume hasn't been too bad either the past couple of days. It's not explosive bullishness, but that may actually work in the market's favor - a big one-day gain like the July surge may end up with the same response.... nothing but selling for the next few weeks.

If Liquidmetal Technologies shares can make a close above today's and yesterday's highs around $0.175, that should seal the deal and really make LQMT buy-worthy. For most traders though, the break above declining resistance lines is good enough.

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