1 million buyer, page-9

catherine davey/1 million buyer 23 bid not gettin Catherine Davey
Allegiance Mining NL (AGM)
By Catherine Davey, 30 Mar 2006



Analysis

AGM has already proven it trades text book double bottom patterns. In early 2003 AGM closed above 6.5c. This was followed by period of consolidation before a dramatic rise in the middle of 2003. The price reached a high of 23.5c in December that year. This was the same level AGM reached in early 2000. This meant AGM was on the verge of confirming a long term double bottom pattern in late 2003. However it never happened. Instead AGM fell back, reaching lows of 9.5c and trading in a tight range. This range lasted for over a year and a half before once again rising to meet the 23.5c level.

Outlook

AGM has a clear level on which to get bullish. This level is the multi tested 23.5c. The price has been beaten back from this level twice in the past and is currently hovering around it having been as high as 24c on an intraday basis. A close above 23.5c and I expect a new phase of the uptrend to begin with a minimum target around 44c. However this stock was once worth as much as 76c and given the length of time it has spent forming the base I would give this stock big mover status. This means it has the potential to go well above the minimum target.

Support:- 0.165; 0.095; 0.07

Resistance:- 0.235-0.24; 0.31; 0.39; 0.48