Ann: AGES 2013 Presentation , page-11

ABU is in a great place right now. 'Delicious' is a suitably descriptive word to use here. It's 'off and running'.

It's showing my ideal parameters for stock selection - a marvellous story with stuff in the ground, money in the bank, first-rate people running the show and - finally - the technical signs that signal ... GO!

What are they? They are roughly the same one's that let me make 11 consecutively profitable trades in a US-based junior oil stock three years ago.

Here's what I see:

1. The SP has bounced off a support line that runs all the way back to April 2009,
2. It's also cracked a resistance line drawn from the peak in October last year,
3. The SP is also north of the 30DMA,
4. The MACD and its histogram are both positive,
5. The OBV is rising (Why would it be doing anything else?),
and according to my trading techniques and therefore MOST IMPORTANTLY ...
6. The buyer/seller numbers and the numbers of shares wanted compared with the numbers on offer are roughly 2:1 in favour.

There's one more indicator to consider. It's the one that played such a big part in those 11 successful trades I mentioned above. The SP is topside of a Bollinger 'squeeze'. Love it!

You'll see that my sentiment says 'Buy'. This stock is perfect for both short-term trading and holding for the long term (an outstanding exception to the approach these days which eschews buying and holding). Buy therefore according to your philosophical approach.

On its run, ABU's SP is going to go up and down. Good; that's what this trader wants, but the general trend, I believe, will be inexorably upwards. A long term parcel and short term trades on the way up seems to be a pretty fair approach to being in this one.

Good luck.

(Stops in place, always.)
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