daytrade diaries... january 18, page-14

GDay all,
Dow tanking on Fri night will cause some expected morning weakness, but again it could be a perfect chance for many to pick up even cheaper shares after selloff last Fri.

RTL. Possible project acquisition on the cards here (seems to be flavour of the month with SHE, CLN, GLA also showing substantial gain). Only 2 weeks remain before the 2nd tranche of placement gets approved on Jan29, so today/tomorrow could be the last chance to get some cheap shares before pros start pumping this one? It was well capped last week & recent drop from high of 3.2c provides an excellent opportunity to enter. 61.8% retrace is complete at 2.1/2.2c level & it has proven to be a very solid support level. Worth keeping a close eye on the volume today to see if pros are at work. Look forward to seeing RTL exploding after the capping is over and making another ADO type frenzy.

SGY. Almond Groove well spudded just over the weekend & it only takes 6 days to reach the main gas reservoir target with the secondary reservoir also expected while drilling down. The spudding news on Fri wouldv flushed out traders who intended to sell on spudding news, so today should be a perfect day to enter in anticipation to gas shows. Could replicate a VIL run.

GBP. 19c should again act as a solid support level during the expected morning selloff. 19c is also sitting right on the support trendline within a new ascending channel that GBP seems to have been trading along in recent weeks. This makes 19c a perfect entry level. I see 23c as the next stop when the momentum gains. However, as we get closer to the spudding date, I would expect some explosive moves & highly likely a new steeper trading channel will replace current narrow slightly upsloped channel.

ROG. 100% interest in two Surat Basin permits ATP 840 and 904 (combined potential gas-in-place of 8 TCF!). Spudding late this month, so a pre-spudding rally could start soon. Majors (BG, Origin & Arrow) are drilling nearby. Also, JV with CTP already made coal discovery in NT, which can be commercialized as CSG or utilize UCG/UCTL technology. The price has been under sustained selling pressure after issuing shares to the original permit holders for transferring interest & its currently just sitting on the last placement price of 3.6c. With spudding on such massive impact wells just around the corner, I can see the current price level a very cheap price to enter.

BAS. Another massively undervalued oiler with MC of 11m, less 4m of cash, leaving only 7m EV. With huge projects such as Judith gas well 325BCF (Greater Judith area has almost 2 TCF potential), any advance on farmout will put a rocket under share price & it could easily replicate MOG/MEO type run. It has been accumulated for a couple of months and the brake seems to just start loosening (4.2 major resistance & downtrend line was broken on last Fri with more than average volumes, upper Bollinger band was pierced through). MACD & stochastic are turning up with bullish crossing, positive divergence also appears to be heading for MACD diagram high, all signaling a possible start of upward momentum & buying pressure.

CDY. Another biotech flying under the radar with 10ml MC & almost 4ml raised from recent placement with strong interest over-subscribing for another $1ml. Already have licensing agreement with major US corp Celera Ltd (post # 4937475 for more detailed research). 1st tranche placement shares (though issued back in Nov) never seems to have been pumped yet to let the volumes out & 2nd tranche is to be issued before 1 Mar together with $1ml oversubscribed placement shares. Now this smells like the next ADO in many ways (major licensing deal, 1st tranche placement was issued 2 months back but was never pumped until the news arrived). The sudden surge on CDYs volume last Fri may be a sign of potential news coming & long overdue post-placement pump just starting? MACD & stochastic both made very bullish crossing+positive divergence, also just broken out of downtrend line in strong volume, all signaling start of upward momentum & buying pressure. Just be very cautious though as the price fell from Fri high of 4.2 to 3.4 very quickly on the back of speeding ticket. Keep watching volume this week.

PNO also took out major resistance of 1c last Fri on more than avg volumes. It is said to launch a bio product onto market this month (the marketing side is the key IMO), so again watch volumes & exercise caution as this one is a typical P&D.

Again ORD & MHM have been making interesting moves recently, so watch closely.
I will be also waiting for another 2 days for a bounce play on ADO & watch 61.8% fib retrace level.

GL all
JL