daytrade diaries... february 4, page-5

Thanks HLL, Aksier & PJ, seems like the market tension is still there, so trade cautiously.

Again a few worth watching:

ARO. Yesterday saw some classic action by accumulators to catch out day traders & soak up some placement shares. After the non-acquisition related ann, someone was happy to absorb at 1.1c during the minor selloff & chased it all the way up to 1.3c towards close. It appears to me that the buying towards close was quite desperate, which signals acquisition news could be just around the corner. The company has publicly stated that it is seeking several acquisition opportunities, apparently in several sectors as well (gold, uranium & energy). The recent volumes & the classic action of accumulators could be a hint of many acquisition news to be coming in the near future? Charts show a bullish Dragonfly Doji on strong volume that reflects the urgent buying towards close.

MMZ. A lot of game playing accompanied by strong volume recently. I still believe there is a large accumulator behind in anticipation to news soon. So to me, the best way is to get set early & wait patiently for the news. Or exploit it as a day trading opportunity by keeping an eye on any ann & then reassess depending on the news (like what many did successfully on SMA & ANP).

RTL. Expect acquisition news soon. Pending volume confirmation. Positive divergence is forming on MACD histo. Stoch bounced back up from oversold territory but not that convincing (could have wipsaws). Seems to be holding 1.5 support quite strong. And quite a few large buy orders appeared in last few days & they just patiently wait at 1.5, so looks like subtle accumulation to me.

VIL finally broke 5.2 significant resistance yesterday & appears to be heading towards 6c to close the historical gap. I would be taking profits at 6/6.1c, as last time VIL broke significant resistance of 4c, shot up to 5/5.1c & then we all saw what happened after that. Of course it could be different today depending on the momentum & sentiment & how strong or fake the market depth is, but just need to watch when to take profits.

AEM (awaiting mining approval), LOM (African diamond play), CAG (acquisition of gold assets) & RMI all saw huge volume lately. Worth watching.

GL all
JL