daytrades june 21 pre-market, page-3

This Weeks Picks

Market Direction: The rally on major global indices continued last week with all recording solid gains. The right hand shoulder on the Dow daily chart still looks to be forming. The top of the shoulder should be around 10,700 points. The neckline is at approximately 9,800 points which gives a revised target of 8,400 given the top of the head portion of the formation was at about 11,200 points (Target = 11,200-9800-1400 or 8,400 points). As was discussed last week it could take a couple of months for the right hand shoulder to completely form. This would mean we are likely to see a rally continuing until the top of the shoulder is reached at around 10,700 points, probably some time in late June or early July. From there the declines would commence towards the neck line at around the 9,800 point level. Once the neckline breaks I would now expect 8,400 to be target probably in September/October this year.



It is another quiet week on the economic front with a focus likely to be on the UK budget and the potential withdrawl of economic stimulus, as well as core durable goods orders in the US. Nothing of particular note is coming out in Australia.

EUR German ifo Business Climate Tuesday 6:00pm
GBP Annual Budget Release Tuesday 9:30pm
USD Existing Home Sales Wednesday12:00am
USD New Home Sales Thursday 12:00am
USD Federal Funds Rate Thursday 4:15am
USD FOMC Statement Thursday 4:15am
USD Core Durable Goods Orders Thursday 10:30pm
USD Weekly Unemployment Claims Thursday 10:30pm
USD Final GDP q/q Friday 10:30pm (will only impact if substantial downgrade)

KIK: Another update was released on the 15th of June which disclosed that production was being restricted to 5,000-6,000 bopd whilst awaiting the installation and testing of the oil-in-water metering, which allows the separation of the water from the oil. This was expected to take a few days after which production levels were anticipated to resume at previous levels of 15,000 bopd. In the mean time KIK has gone into a halt to raise some capital, presumably to fund the deeper wells in the adjoining permit. The details should be released this morning, along with a further update from the project. News Due: Further results from the EWT at the Tindalo oil development project in the Philippines including the resumption of higher rates of production. Details of the capital raising. Price Target: I will update my price targets when I know about the details of the capital raising. Disclosure: Holding KIK



OBJ: The stock broke out on reasonable volume on Friday afternoon breaking above recent resistance at 2.1 cents. I'll be watching for trading opportunities but do have some reservations about the management team so any position I choose to take will not be large. News Due: Updates in relation to evaluation agreements with 3M and GSK. Price Target: The price closed above resistance of 2.1 cents on Friday and looks to be headed for 2.5 cents soon after the open this morning. If that gets broken then a move towards 3 cents is likely. Disclosure: No Stock Held



ADO: The company's shares held up extremely well during the recent market volatility and look to have begun a new uptrend. A break and close above 6.5 cents will confirm three higher lows reinforcing the idea that a new sustainable uptrend is well underway. Volume has also been healthy so ADO should be worth watching whilst this trend continues. News Due: Further licensing agreements for the company's Mix & Go product with bead manufacturers, research organizations or IVD pathology suppliers. Price Target: Now that 6 cents has been broken the next target is 6.9/7.0 cents. Disclosure: Holding ADOO



EKM: No changes to last weeks update apart from the fact that the Bollinger bands are very tight which can be a precursor to a breakout in either direction. Assuming very good results are released from the holes with visible panned gold I am hopeful that the move will be up especially given the current climate of record gold prices. News Due: Assay results from the Central Bore South drilling. Price Target: There is resistance at each price level up until 13 cents. A break above this level, and in particular 14 cents could see new highs being achieved. Disclosure: Holding EKMO



Good Luck this week.