some comments on lihirs technicals, page-12

Yesterday and the day before, LGL had good rises in the share price, probably on the expectation of a very positive production report. As a result of the after market auction, the technical aspects of LGL's price marginally triggered a "buy" signal - the MACD had a positive crossover and the downtrend line was broken to the upside. This combined with a positive looking OBV suggested LGL was a "buy".

The production report was disappointing.

So where is LGL now? - back more or less where it was before that two day rise.

The near term prospect for LGL's share price means that it is still on the cusp of a "buy" signal. The SP has slipped to just below the down trend line. The MACD is on the verge of a positive x-over. The OBV is still positive. Strong support exists around 3.73/3.74. The OBV stands at a level now (while the share price is below 3.80) as when the share price was 4.10. This is a significant positive divergence.

I'd keep an eye on LGL. It is just simply not a "buy" at this time.

A positive movement in the POG (above 415 should do it) would probably see the technical analysis for LGL turn bullish.

Warning: a significant move of the share price below support at 3.73/3.74 would be a further sell signal on a trading basis. Next areas of support are around 3.60 and 3.40. It could easily drop down to 3.20.

Cheers
Red