Kraig Biocraft Laboratories Inc (OTCMKTS: KBLB) has been a top penny stock for Insider Financial subscribers this year. However, the recent selloff has brought along some significant technical damage.
On the bright side, the 0.786 Fibonacci level held. The stock has now bounced off that level, but there is a great deal of resistance overhead.
$KBLB is now trading below its 20 and 50 day moving averages. The 20 is at $.37 and the 50 is at $.33 a share.
Expanded Investment License in Vietnam
The latest news from KBLB was an announcement that it was awarded an increased investment license for expansion of its recombinant spider silk production at Prodigy Textiles, its Vietnamese subsidiary.
Under the new license, the Vietnamese government increased the Company’s potential investment cap, to as high as $50 million USD. This significantly increased investment limit will now allow the Company to prepare for the second phase expansion, planned for a 123 acre site located near Prodigy Textiles’ existing facility, and is part of the Company’s systematic and structured plan to expand capacity.
This new license was awarded during a recent trip to Vietnam, taken by the Company’s COO, Jon Rice, to oversee phase one production implementation. After reviewing the progress made under this first phase and meeting with Prodigy Textiles’ president, Vietnamese officials authorized the expansion of the Company investment in scaling up recombinant spider silk production.
The company needs to deliver ground breaking news to get the bulls excited again. All eyes will be on the AGM on the 24th.
In the meantime, we see better chart setups than KBLB at this moment and rate KBLB a hold. To get our next alert via email and SMS, sign up in the link below.
As always, use protective stops and trade with caution.
Good luck to all!
Disclosure: We have no position in KBLB and have not been compensated for this article.