well as expected from many, a pull back occurred on Friday in the US..its amazing how many bears appear to come out of the woodwork as soon as they get the fall they are after, however I think this is a completely healthy pull back which was need to refresh those over bought indicators on many of the charts..
Below is an updated DJIA chart showing where we are at the moment..A month ago I posted the chart with my thoughts on where we were heading short term which was to the 10700 level where I also considered major resistance from some 18 months back. Well that resistance has proved to play out, as we have tested that 3 or 4 times over the past week.
IMHO we might see a few more down days which would be rather healthy, though lets face it,its all going to depend on the US earnings seasons results over the coming week.
What makes me think we are going higher? The recent consolidation nearly twice as long as the previous one (see older chart) before breaking higher... This should act now as a decent support IMHO. Who knows I could be real wrong.
I have a few charts Im going to post. The first is Hannah's Reward (HNR). I am going to post the 6 month chart, but if you were to have a look at the longer term chart you will see how significant the breakout is.
Very good volume the last few days, with the 26c resistance broken. They were issued with a speeding ticket on Friday, which they responded very smartly to it, in addition followed up by giving themselves a little wrap by releasing a company presentation. I also was informed that they were some research notes released by Fat Prophets recently (trying to track that down now).
Second, which is the most interesting one to me for a while.. Aura Energy (AEE). On Thursday we saw volume building with around 871K shares traded. In the past it has failed to rally the following day, however we saw 3 times the volume on Friday with over 2.5M shares changing hands closing half a cent of its high @ 19c (up 11.77%).
Two charts below. The first shows the volume and the 2 very nice looking candles breaking the downtrend and moving average. With the second chart, a two year chart showing the break of the downtrend from a longer term view. I like this part the best...
News due soon from their recent drilling in Mauitania where their sampled were significantly mineralised with high grades... I'm fairly confident that punters started to take a position today in anticipation of these results, and why be surprised...as I reckon these reults may just be the start to great news for Aura in 2010. This could easily go to 50c if these results are any good.. Market cap only $15M at current levels.
Finally Ord River Resources (ORD) Some serious distribution the last few days on ORD. I suspected we might see a break through the 6.4 resistance on Friday, though unfortunately didn't happen. Volume has been huge lately, so I reckon were in for a surprise sometime soon. Plenty of news due here any time now.. Best to be on this one then not for when the news does come. Today might provide a cheaper entry.
Other stocks worth watching today include PEN, AQR, MHM, OBJ, AOK, ADO, SWK, AVB, IOH, UEQ and OEL
Good luck today all and sorry for the small novel.
