ADN: The last of the T+3 selling following on from the assay results announcement should be complete today. I would expect interest to build early this week in the lead up to the next batch of results. Some are expecting the gap at 30 cents to be closed in the short term however given the price reached 30.5 this might be enough since it is the next price level from where the gap started. News Due: Assay results from deeper sections of the Rover 1 hole to reveal whether gold/copper mineralization continues deeper.
MHM/MHMO: The stock should come out of the trading halt this morning. The announcement relates to a project acquisition so it is probably related to the news due below. The stochastic is relatively high and looks set to cross down in the short term but the RSI and MACD are looking neutral and no where near overbought. I expect the share price to strengthen on the completion announcement because it will signal the beginning of revenue and profit generation for the company. However there is the potential for SPP stock to hit the market from Friday onwards so it may be prudent to take some profits. News Due: Completion of acquisition of Aluminium Salt Slag plant outside Geelong. Update on silica project including a potential silica plant in Tasmania.
BCN/BCNOA: The JORC of 74K oz failed to meet my expectations and given the high level of dilution from recent share issues I have decided to drop BCN from my list unless they get some spectacular drilling results which indicate a major upgrade to the resource. News Due: Further exploration results from the current drilling program at the Barlee Gold Project.
ARM: I expect the all time high of 65 cents to be tested today. The chart shows that there will be further strength in the share price in the short term. The MACD and RSI are still rising rising but the stochastic is now over 80 in overbought territory however this indicator can stay in this region for considerable periods of time. Further sampling results are due in the near term which could push prices passed the all time high into blue sky territory. News Due: Further Manganese sampling results, drilling approvals and details of upcoming program.
BCC: Hopefully the Lee County well will spud this week, the first in a planned 10 well program. Trading activity picked up on Friday and with the shares recovering slightly from their oversold position. The chart looks better with the stochastic rising from oversold levels, the RSI is rising and looking to cross above 50 and the MACD histogram flattening but still having some work to do before a positive cross occurs. News Due: Spud of Lee County well. Confirmation of ramp up of pompano gas production to a target level of 8-10mmcf/day.
GOA/GOAOA: There was a nice looking hammer candle from Friday’s close indicating that there could be some short term upside in GOA. Enough time has now passed for a reasonable proportion of the placement stock to flow through to the market so hopefully prices will strengthen from here. The chart looks excellent with the stochastic having crossed from oversold, the RSI rising and the MACD looking set to cross in coming days. I have also noted that there is positive divergence occurring on the MACD histogram and the signal line with higher lows whilst prices have been falling. This supports a case for a positive breakout in the future. News Due: Progress on building of plant for the Sao Chico project in Brazil. BFS progress for Fergusan island project in PNG. Confirmation of drilling program at Crater Mountain scheduled for January 2010.
