will the gap be filled, page-9

I think the gap will be closed Orgone, finally.

The gap was created by two big events in MEO's history.

In Dec 07 a placement of 50 million shares at A$1.25
per share was made raising A$62.5 million. This and the news item stating MEO as the new kid on the Aust oil producing block sent the shares racing to an all time high of 1.60 by 2nd January.

This placement was to raise funds for drill testing and seismic studies over the two projects being run by MEO.

Unfortunately, by 23 Jan 2008, cyclones and poor drilling results sent the SP plumetting down to a low of 20c by 23 Jan 2008. So - from the highs of a placement to the lows of a perceived drilling miss caused a drop of 700% over six weeks. A lot of traders lost a lot of money at this time which has led to a lot of the negative comments on the MEO posts.

The strategic alliance set up with RDI in July 2008 looked promising. This led to a SP recovery of sorts to around 60c. But the problems with the Zeus 1 testing and the financial crisis leading to RDI not being listed sent the share down to its lows of 6.5c by Mar 2009.

The seismic studies, also funded by the original 50m placement, have proven very positive leading to the present anticipation of the market regarding a possible farmin agreement.

There is also still a positive vibe surrounding Tassie shoal which is why MEO has such a varied cross section of traders holding the stock including long term and short term holders.

The difference this time, compared to the heady days of 2007/8, is that we have learnt a lot from over-inflating prices too quickly. In 2008 the whole market was boiling, waiting for a disaster to happen. MEO got caught up in this. Even good news resulted in a downturn for some shares.

This is why we all must be patient - look at the sitaution ahab32 is in now by being patient.

Like Orgone says maybe the gap will be closed and resistance will be set at >70c. I think it will - it has been a long time coming and this time it is third time lucky IMO. Personally I would like to see it come slowly than have a repeat of the past.

Sorry about the long winded post but perhaps this rant shows how the charts can graphically depict historical data at a glance.