daytrade diaries... october 13, page-2

Todays Picks
CCU: We got the volume and the price move yesterday to confirm a likely breakout. The chart looks great with the MACD crossing up and the RSI and stochastics rising. Yesterdays move to 20 was backed up by an announcement increasing silver reserves from 44 to 50 million ounces with some handy lead credits (Note the grade also increased). CCU is now included in my investment portfolio meaning that I will hold some core shares as a longer term investment.

BCC/BCCO: Overall a weak performance yesterday with the stock falling from early highs of 5.9 cents. This once again raises the prospect that the gap to 4.5 will be filled. I’ll probably amend my buy order up from 4.5 to 4.6 to increase the chances of it getting filled.

RED: Looks to be consolidating recent gains. With the indicators on the chart flattening I expect this pattern to continue and wouldn’t rule out a retrace to around 12 cents. If this plays out I’ll probably look to buy some more stock.

GOA/GOAOA: Following Friday’s increase in volume and price I was expecting more yesterday. Instead volume dropped off however we did get a nice hammer on the chart. I think the period of consolidation is ending however we need a strong day today to confirm this.

ATN/ATNO: I couldn’t resist the temptation of a 120% profit for an overnight hold on ATNO so I sold 50% on open and the other half at 6 cents shortly after. What a great result to start off the week. I am still watching from the sidelines with interest but am unlikely to reenter after such a powerful run up.

MEU: I bought back in at 18 cents yesterday as the signs of rising volume and price indicated a breakout was underway. After the close there was a positive announcement about their Junction Dam uranium project, with the confirmation of a prospective palaeochannel. I expect a move to or possibly through 20 cents today.

ARM: Bollinger bands continue to tighten and the indicators look set to turn up. Wise-owl was another company joining the ARM bandwagon yesterday putting out a buy recommendation with a 12 month price target of 81.5 cents. Should ARM prove up 20mt of Manganese at their Capricorn project the price will be many multiples of that.

Good luck trading today.