chart

AUJ

I am highly anticipating the AUJ silverwood drill. The delays in drilling could very well have done the share price some good with regards to the overall market's recent correction. When AUJ starts drilling it should be primed by some positive market movement to reap the full benefit of any speculation and highly probably hydrocarbon shows.

Briefly re-capping:

- Firstly AUJ are less than a week away from drilling at silverwood with an estimated 7.4mmbbls plus 13bcf potential!

- The prospect lies beneath a producing well, North Edna Field, which was first discovered in 1954. This has produced approx 7 MILLION barrels of oil!

- Their operating partner is Pass Petroleum who was also the same operator for VIL/GGP's Fausse Point drill (Let's hope AUJ experiences a VIL type SP run).

The options 'AUJO' are great value. They are in the money atm with an exercise price of 25c and have been hit the hardest by the markets recent correction. When AUJ spuds and the pre drill results hype starts kicking into gear AUJO will be a great highly leveraged short term play. When AUJ was trading at 46c AUJO was trading at 21.5c. The oppies are so undervalued atm due to drill delays and the correction. This won't be for too much longer imo, when the volume starts pumping so will AUJO.

Chart below:



I have circled the 2 things in the chart to take note of. These are only short term musings atm but if the action persists with the chart then a strong short term trend will develop with AUJ.

- The first yellow circle notes the MACD having crossed like it did almost 2 weeks prior. It was in a strong positon to gather momentum and run 2 weeks ago but drilling delays halted that run. If we get our spud in the aniticipated timeframe then this indicator will play out and the SP will gain momentum. It is also nearing a cross of the zero line which will generate a buy signal for conservative traders.

- The second yellow circle The DMI+ (green line) is about to cross the DMI- (red line). If the cross followed through over the next few days/week with the green line breaking away from the red it would indicate strength in the upward trend, the bulls showing their dominance. 2 weeks ago this was about to playout until the drill delay. You can note other times when the red or green line has broken away and the trend exhibits strong trending in the appropriate direction. I hope next week we get a drill anouncement and this indicator doesn't fizzle out again.

- Volume is really low atm and when this starts showing some strength the indicators will playout and the SP will run. Notice the big volume days in March with little share price gains, this is big accummulation and with good reason!

I have included a blue pitchfork where i am confident AUJ will trade within (permitting no drill delays). It wouldn't take much momentum for AUJ to trade upto 40c+ where it was in April. AUJO was trading at 20c+ back then and is only 2.5c now!

All the best holders. Bring on spud!