buy the fact when it is better then the rumour, page-59

Morning guys.

Yesterday saw a very positive company announcement fall flat and the sp was sent south. Easy explanation. Momentum traders exiting for short term profit. Anyone remotely interested in the fundamentals of NGE or a medium trade did not sell. Or maybe sold and bought more at a lower price to increase their holding.

The price action yesterday was in no way a reflection of the announcement or its contents. Traders also need to make a living and riding announcement driven momentum is one of them. Overall it increases volume, activity and exposure of a stock. Sometimes a necessary element in a stocks progression.

I entered NGE below 10cents as a momentum trade based soley on TA, but the more research I did into the fundamental story I have amended by trading plan and will now hold at least for the medium term. That's not to say I don't sell and buy lower, in order to accumulate more along the way.

Thanks to those who've done quite an indepth analysis of the NGE story so far. Thumbs up. It really is quite compelling and I'm excited to be here to watch this success as it unfolds.

Put simply, there's oil seeping out the ground. A hugely successful multinational wants to get their hands on a slice of the NGE pie and everything else around. The neighbouring leases have oil and lots of it. The multinational happy to pick up the tab for drilling and all technical assistance. Multinational wants to start drilling ASAP. NGE keeps 100% of what is considered potentially the best lease. That's enough positives for me.

I'm mostly a TA trader so I have charted some interesting fibonacci retracements of the last couple of dips. There seems to be a short term pattern developing. Each retrace hits roughly the 38.2% fib retrace level before heading back north. Almost is the "retrace we had to have" to bring the sp back to the MA. Please note that I use 'highs and lows' for my calculations. Any comments welcome.