There’s no such thing as a sure thing, but there are such things as ‘high odds’ or ’strong clues’. After Biomoda, Inc. (OTC:BMOD) made a solid 15% move higher on Wednesday, it became one of this high-odds, strong-clue stocks. From here, BMOD may at least make for a good trade, and perhaps even turn into a profitable long-term investment.

Wednesday’s move itself isn’t a huge deal. It helps, but it’s not the end-all, be-all.  When combined with the action from three weeks ago though, then Biomoda, Inc. becomes much more compelling.

The basic idea here is simple - the move from $0.18 to $0.32 at the end of January was impressive, but also a risky bet…. all too often, those patterns never materialize as actual breakout efforts. And sure enough, BMOD fell all the way back $0.20 a week and a half later. In most cases, the story would end there. To see Biomoda, Inc. revived though - particularly on a bearish day for the broad market - strongly suggests the buyers want to be more persistent than the sellers.

In the bigger picture, this shallow V-shaped reversal with a pivot from early December is  firming up; the strong push on Wednesday just verifies it.

Bottom line? BMOD is a decent buy here, at least for traders not looking to get married to a penny stock. On the other hand, Biomoda, Inc. is also a viable long-term equity, boasting a P/E of 26.4 (or 90.0, depending on the source). An investor could do a lot worse either way, though true investors will want to weigh the opportunity behind its cancer screening technology.

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