day traders diaries ... tuesday, page-3

Morning All,

I will be taking a cautious approach today by avoiding overnight holds as much as possible. It appears that the markets here and overseas are experiencing some profit taking. After a hard run upwards since 6 March, a sharp correction over the next few weeks is a distinct possibility.

On my watch list today will be:

SWK- a continuation of yesterdays run based on yesterdays’ announcement. Next line of resistance is at 60c.
GDN- expecting heightened speculation in the market on a good result for their drilling. Looking back at the chart, the price has spiked to around the 1.25 level three times since 2000 on drilling results, and just as quickly fallen back again on disappointment. The last spikes were in Nov 06 and April 07. Caution advised because a new issue of 41 mil shares became avail on Fri which may see some profit taking
LNC- news expected soon re coal tenement sales- watching closely
CFU- great run yesterday. It is now in that traders favourite spot range at 10c, so expect trading in the 9.5c to 11c range could continue for some time. The charts are starting to indicate that this share is in overgrought territory, so tight stops will be the order of the day,
NWE- expecting some T3 selling to take place today which could provide some nice bounce trade opportunities
COI-It broke recent resistance at 47c yesterday, and closed right on 47c. If it breaks yesterday’s high of 50c we may see a good run up... I don’t see any resistance levels after that
UNX-has convincingly broken out of a descending triangle pattern on the chart, although there is a price gap at 28c which could be a breakaway gap or will be filled. The Momentum indicators have turned bullish for this share.
HFA, NTU, BBP,

Happy Trading