daytrade diaries... january 14, page-6

GDay all,
Todays picks include one possible small cap acquisition play (RTL), two undervalued oil & gas plays (GBP, SGY) & HEM on bouncing back. Was in ADO yesterday at 1.2 out 1.9, but worth keeping an eye on it today.

RTL
Possible project acquisition on the cards here (seems to be flavour of the month with SHE, CLN, GLA also showing substantial gain, so RTL could replicate same explosive moves). Looks like 2nd tranche of placement will be approved on Jan29, so its highly likely the big players will need to pump up the price & volumes within next 2 weeks. All the ingredients for an acquisition play & placement pumping are there, the key here is to enter early with earlier volumes suggesting smart money has already taken positions. Recent drop from high of 3.2c provides an excellent opportunity to enter. 61.8% retrace is complete at 2.1/2.2c level & yesterday was the last day of T+3ers closing position, so a bounce back to resume uptrend could be on the cards today?

GBP
Techinicals: Impressive performance lately caused by smart money & some traders (including quite a few HC red hearts) taking early positions in anticipation to the huge spudding. Yesterdays broad selloff confirmed the strong support at 20c & again provides an excellent chance to enter if you missed the last run. Im hoping the almost 3 yr high of 29.5c gets taken out soon, then its blue sky ahead till a gap at 53c. Slow Stochastic & MACD crossing still look bullish, positive divergence just started appearing on MACD diagram.

Foundamentals: 25% interest of 100ml barrel potential, spudding 1 Feb. 32ml MC with 25ml cash+producing wells. Oil majors Heritage & Tullow drilling nearby. 96% success rate (see Post 7954 by PLM,). The area that GBP is drilling C Lake Albert Basin hosts a staggering minimum 6BL(!) barrels of oil potential (see post 4921418 by Solarfeen).

SGY
Charts: Despite the broad selloff in the last 2 days, SGY held on to 12.5/13c strongly with a Hammer & a bullish Doji candle. On both days, genuine buyer interest returned after the morning selloff to 11.5c, which is a very bullish sign. And I still like the look of the super bullish MACD & slow stochastic crossing, positive divergence yet breaking another MACD diagram high, again! So continued strength is likely. The ann coming today should lit the fuse for this stock as we could be only days away from the first gas show. After seeing the 100% gain on VIL on the gas show ann, im quietly confident on SGY as theyv already proven theres commercial quantity of gas in 2 wells just over 1km away!

Quick recap of foundamentals: 40-100bcf high impact low risk appraisal wells,spudding today (1 week drilling to TD, so not a long wait). 2ml cash+producing wells+owning gas plant/pipeline,20ml MC @ 10c. (check PLMs post 8553). Remember this is an appraisal well (not a wildcat), which means the area is proven of hydrocarbon & SGY also has 3D seismic to assist.

HEM
Currently drilling IO in Yandicoogina (the 2nd richest mine in Australia with RIO operating mine nearby). With IO sector attracting huge interest ATM, this stock has been well capped & flying under the radar. The recent drop to 59c from high of 76c almost completes 61.8% fib retrace (with recent low of 45c?). Late yesterday real buyer interest surged to scoop up cheap shares & the charts almost showed a very bullish hammer (although ended the day with a bullish Dragonfly Doji candle with long shadow), signaling a reversal could be on the way.

Again Askier said everything better than I could on ORD