Time to Add Superconductor Technologies to Your Watchlist (SCON)

Just for the record, Superconductor Technologies, Inc. (NASDAQ:SCON) isn't over the hump yet. But, given the likelihood that it could get over the hump with little to no fanfare, now's the time to put SCON on your radar.

For those not familiar with it, SCON is a technology name. Specifically - and as the name would suggest - Superconductor Technologies makes high-temperature superconducting materials and technologies that serve purposes in communications as well as utilities. As with any cutting-edge technology, the prices for said technology are premium prices, but demand is uneven. When times are good, the money flows, but when things get shaky, revenue can dry up. Indeed, that's exactly what we saw unfurl for SCON between 2008 and last year, when annual revenue fell from $11 million to $3.5 million.

So what's got the stock popping (even if temporarily) now? As they say, nothing lasts forever. The Superconductor Technologies, Inc. lull may finally be coming to a close.

For starters, Superconductor Technologies has generated $3.8 million in sales over the past four quarter. And, thanks to several proverbial planets lining up this year, the pros expect the SCON top line to reach $11.0 million in 2014. That still won't likely be enough to push the struggling company to profitability, but for the market's typical investor, that's enough hope for the future to go fishing now... or at last think about it.

That's not the biggest reason a trader might want to start keeping tabs on SCON as a possible trade, however. The most compelling part of the Superconductor Technologies, Inc. story right now is the chart.

First and foremost, this weekly chart of SCON shows the slow rebound effort that the stock's been working on since the middle of the year. It's been nothing but "up" since August, and even more telling is the way the bulk of the volume on the way up since October has been decidedly bullish.

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Zooming into a daily chart shows more details regarding the stock's recovery effort, but specifically, it's here we can see the more controlled and highly-important approach towards the 200-day moving average line (green). Yes, Superconductor Technologies shares failed to move above them in April when the big surge carried the stock to that key moving average line then, but given the size of the jump and the gap it left behind, the stock never really had a prayer. Sure enough, the bears cooled things off rather quickly.

This time is different. This time, the stocks heading to the 200-day moving average line at a controlled, sustainable pace, and SCON may roll right past it without anybody noticing. That's why it needs to be added to the watchlist now... this is a great "almost" setup to tap into a long-term uptrend.

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