I like stocks that revived because of strong earnings. One such stock this season may be China Aviation Oil (CAO). The earnings released caused the price to jump up today! This is the summary of the earnings.
63.4% quarter on quarter earnings increase! Not bad for a stock near its 52 week low. Currently the price is $1.02 at closing, increase by $0.07 today. But I don't think that is the end of this stock. It is proposing a 1-5 bonus subject to approval.
Bonus news:
http://www.shareinvestor.com/news/news.html?source=sg_si_express&nid=71287
Expectations on this stock will be good before the bonus issue.
Another plus point is that CAO is seasonally strong in november and december. Check out the chart for these 2 years. It coincides with the strong seasonal trend in energy industry.
Short term wise, these few days this stock might stay stagnant because of the gap up. You should have the patience should it consolidate for a few days.
Now: $1.02
Support: $1.00 or $0.90 (strong)
Stop loss: $0.89
Short term Target 1: $1.10
Target 2: $1.17-$1.20
