daytrade diaries... december 2, page-2

Today’s Picks
BCC/BCCO: A 4.6m placement has been arranged with one of the existing shareholders in North America. One can only assume that they understand BCC’s Lee County project very well and recognize the potential there. The action yesterday was bullish with a weak opening followed by a strong close at the days highs. This bodes well for continued price strength in the near term. News Due: Confirmation that the Pompano well has increased production to its target range of 8-10 mmcf/day. Spud of Lee County Well updated timing.

ADN: Yesterday was a little weaker than I hoped for but the chart still looks bullish and I maintain my opinion that the potential for substantial capital growth in the next two weeks is outstanding. I wouldn’t be surprised if we get a trading halt as results get closer. Due to the quality of the company’s Rover and other projects I have no problem holding a parcel through to the release of results. News Due: Assay results due in early to mid December from the diamond drill hole at Rover 1 next to Westgold resources discovery. Indications are the grades will be very good.

GOA/GOAOA: The stock began to show its potential yesterday with the price rising on very good volume. The chart looks excellent with positive divergence on the MACD and RSI (Higher lows on the MACD and RSI while the stock price has been falling and recently hit new lows). With production scheduled to start up in early 2010 at around 20K per year with a cash cost of under $400/oz GOA is ripe for a rerating. News Due: Further news regarding startup of production at the Sao Chico project. Exploration plans for the Crater Mountain project in PNG.

ATI/ATIO: A significant retrace occurred yesterday which signals the market wants further news on the Vietnamese project before pushing prices up to new highs. Given we now have a lower high on the chart I would recommend that any newcomers wait for confirmation of a new buy signal on the chart before entering ATI. News Due: Detailed update on the Vietnam Bauxite project. Details concerning new project acquisitions.

PNX: “There could be an opportunity to buy some stock close to 20 cents as these people exit over coming days”. That was my statement from yesterday morning and it played out as expected. The stock showed its potential for explosive price moves on Monday with little resistance being encountered on the way to the close at 26.5 cents. Now is the time to quietly get set in this quality explorer which, in my opinion, has outstanding management who have shown themselves to be very strategic thinkers. News Due: Commencement of drilling program at various projects.

BAS: Thanks to young-trader for highlighting BAS on the day rading thread. I managed to get a trade in for 3 ticks but then it went on to close at the days highs. Todays opening should be very strong however I’d suggest a pull back to 4 cents is likely shortly afterwards followed by a potential move towards the next resistance level of 5 cents. News Due: Details of exploration program funded by recent capital raising.

BCN/BCNOA: Today is likely to be a good day for gold stocks across the board but with the flow of news due to start any day BCN should provide an opportunity to earn some profits in the near term. The chart doesn’t look too bullish after yesterday’s fall, with the stochastic, RSI and MACD all falling but I expect a bounce today after the big rise in the gold price overnight. News Due: Initial JORC resource estimate for the Barlee gold Project.

Good luck with today’s trading.