daytrade diaries... january 15, page-4

Todays Picks

AQR: Finally a retracement occurred yesterday albeit a small one. It was looking like a bearish evening star candle pattern would occur prior to the close yesterday however buying towards the close prevented this. Still after such a huge rise it is wise to use caution when trading this stock for the time being. I expect further weakness tomorrow unless more positive assay results come out. News Due: Further assay results for the deeper part of the initial diamond drill hole 94D at the Whitewash South. Based on visuals these results should be good. Assay results from 95D and 96D are also yet to come.

PEN/PENOA: The handle in the cup and handle pattern was completed yesterday so if it is genuine then we can expect prices to move higher today. It looks like a symmetrical pattern so I am optimistic of a positive result. The target is about 6.4 cents. The drilling results released yesterday were very positive and caused me to upgrade PEN to a strategic hold in my portfolio. This means I will maintain a base holding in the company whilst I am satisfied with progress. News Due: Uranium resource estimates for the Lance projects.

ORD: This is another stock which has been held back by shortfall stock hitting the market however with volume passing 25m shares yesterday and the price recording its best rise in two weeks the process may now be close to completion. The higher low looks to have been confirmed and a new uptrend may be beginning here. The stochastic continues to rise as is the MACD and RSI. The gap at 6.7 cents looks like it will be filled shortly. News Due: Development plans for the Bauxite project in Laos. Commencement of ground EM surveys at the Copper Flats project.

ADO/ADOO: Yesterday I said I thought there might be further upside for this company given the likelihood of more licensing agreements being announced in the near term; but I wasnt expecting another 300%. I think caution should be exercised after a 1500% rise since the announcement came out. Although the stock is still on my daytrade watchlist for interests sake, I will not be trading it because I believe the risk is too great. News Due: Details of further licensing agreements with major market participants.

MHM/MHMO: Settlement of the Aluminium Salt Slag plant outside of Geelong is due to occur today so we should see an announcement later today or on Monday confirming the same. Given profits start rolling in from next week I think we are only at the beginning of a re-rating. The price began to firm right on schedule yesterday which shows the value of keeping track of when major milestones are due for ASX listed companies. I believe the shortfall stock has been sold into the market so I expect further buying pressure will increase prices again today. The chart looks excellent with the stochastic, MACD and RSI all rising but not yet overbought. There is some resistance at 35 cents however with the overhang now likely removed, I believe the stock can surpass this and create a new higher level of support. News Due: Settlement of the Aluminium Salt Slag plant acquisition is due on the 15the so we should see an announcement in this regard this Friday or next Monday. Remember they should start making money the next day. An update on the Silica project (Wacker AG) is also due.