daytrade diaries... january 19, page-3

Todays Picks

AQR: Again the strength of AQR surprised to the upside yesterday. I missed the early selling due to my attention being elsewhere. With the heat now coming out of the indicators there is rrom for the stock to again move higher provided the next drilling results are good. News Due: Assay results from 95D and 96D are due to start coming in this week.

PEN/PENOA: I was expecting PEN to continue strengthening today but the closing price ensured that the candle came back within the Bollinger bands. There is a clear uptrend on the daily chart which started at the beginning of January and that trend remained intact yesterday. However I would expect prices to remain flat or increase today for the trend to continue. News Due: Uranium resource estimates for the Lance projects.

ORD: I managed to buy back the shares I sold last week at 5.9 yesterday. Once again there was plenty of volume but this time on a rising price driven by the announcement of the successful acquisition of a 35% interest in the Yuquida tenement. This is the start of a consolidation of two tenements in Laos which is important in terms of supporting an aluminium refinery. Chart wise there is a cup and handle formation on the daily which has formed over the past month. The handle section should be complete in the next day or so following which a breakout should occur if the pattern is validated. The breakout level is 6.5 cents with a target of 7.4 cents. News Due: Development plans for the Bauxite project in Laos. Commencement of ground EM surveys at the Copper Flats project.

NWE: The action was surprisingly subdued yesterday given the increased activity in the last hour of trading on Friday. The stock managed to close off its lows but the lack of follow through buying may mean further consolidation at these levels. The chart indicators giving mixed signals with the stochastic and RSI falling whilst the MACD is still rising. I believe a close at 3.6 cents or above on high volume might be a signal of a strong upward price move. Yesterdays announcement gave a hint that farm-in negotiations for TP15 off the WA coast have gathered pace so news may not be too far away on that front. News Due: Exploration plans for North Perth Basin including possible farm-in partners for initial targets being Xanadu - 28mmbbls recoverable and Redhill South 7mmbbls recoverable. Analytical results from FTG and high resolution ground gravity surveys as well as reprocessing of seismic data at their Wessex Basin project in the UK.

OEL: There was a significant pull back yesterday which is not surprising given the stock had run from 6.7 cents to a high of 10 cents in seven sessions. However with further news due from other projects, including the startup of gas production in Turkey, any weakness might be short lived. There is a gap down to 7.6 cents which I am not expecting to fill after the news involving BHPB last week. News Due: Results from analysis of the 590 sq.km seismic acquired over the Philippines project in December (Focus on Hawkeye structure 20-600mmbl). Acquisition of an additional 1,000-2,000 sq.km of additional 3D seismic over the SC55 project as a result of the BHP agreement. Gas production startup in Turkey.

VIL/GGP/GGPO: Even the news yesterday that six intervals at Fausse Point are to be tested failed to inspire the market but I detected a positive tone in yesterdays announcement. Across all formations there is a total of 120ft to be tested. I took advantage of the weakness yesterday by buying VIL at 4 cents. Given the testing is expected to begin in 10 days (mid next week), I expect day traders will become interested in both VIL and GGP towards the end of this week. News Due: Initial test results from the lowest section of the Fausse Point well.