daytrade diaries... january 19, page-8

GDay all,
SGY. Almond Groove well (40-100BCF potential) spudded last weekend & it only takes 6 days to reach the main gas reservoir target with the secondary reservoir also expected while drilling down. The spudding news on Fri wouldv flushed out traders who intended to sell on spudding news, so today should be a perfect day to enter in anticipation to gas shows. Could replicate a VIL run. Charts show a couple of Doji candles in a row (in small volumes), signaling there has been no leak of either good/bad news & the current buying & selling forces among retail investors are equal. Expect this to change significantly when gas show ann arrives.

RTL. Possible project acquisition (flavour of the month with SHE, CLN, GLA also showing substantial gain). Only 2 weeks remain before the 2nd tranche of placement gets approved on Jan29, so today could be the last chance to get some cheap shares before pros start pumping this one? It was well capped last week & recent drop from high of 3.2c provides an excellent opportunity to enter. 61.8% retrace is complete at 2.1/2.2c level & it has proven to be a very solid support level. Yesterdays volume seems to suggest that pros are back at work again.

ROG. 100% interest in Surat Basin permits (potential gas-in-place of 8 TCF!). Spudding late this month, so a pre-spudding rally could start soon. Majors (BG, Origin & Arrow) are drilling nearby. Also, JV with CTP already made coal discovery in NT, which can be commercialized as CSG or utilize UCG/UCTL technology. The price has been under sustained selling pressure after issuing shares to the original permit holders for transferring interest & its currently just sitting above the last placement price of 3.6c. With spudding on such massive impact wells just around the corner, I can see the current price level a very cheap price to enter. Charts show a nice Hammer candle yesterday & stochastic made bullish crossing. Still need more volumes though.

CDY. Another biotech flying under the radar with 10ml MC & 4ml raised from recent placement with strong interest over-subscribing for another $1ml. Already have licensing agreement with major US corp Celera Ltd (post # 4937475 for more detailed research). 1st tranche placement shares (though issued back in Nov) never seems to have been pumped yet to let the volumes out & 2nd tranche is to be issued before 1 Mar together with $1ml oversubscribed placement shares. This smells like the next ADO in many ways (major licensing deal, 1st tranche placement was issued 2 months back but was never pumped until the news arrived). Last Fris volume surge may be a sign of news coming & long overdue post-placement pump just starting? Just be very cautious though as the price fell from Fri high of 4.2 to 3.4 very quickly on the back of speeding ticket. Volumes also dropped significantly yesterday, pros could be resting to avoid ticket again. Worth keeping an eye on volume.

GBP. I expected 19c to be strong support yesterday & it was proved with a bullish Dragonfly Doji candle closing 19.5. I see this going up today & 23c as the next stop when the momentum gains. However, as we get closer to the spudding date, I would expect some explosive moves & highly likely a new steeper trading channel will replace current slightly upsloped channel.

BAS. Massively undervalued oiler with MC of 14ml - 4ml cash = 10ml EV. With Judith well 312BCF (Greater Judith area has almost 2 TCF potential), any advance on farmout will put a rocket under share price & it could easily replicate MOG/MEO type run. The charts now show a very early stage of rounding bottom pattern (thanks to Ange for the observation), still need confirmation of previous reaction high breakout (7.5c) in strong volumes though. MACD, stochastic are still looking bullish & yesterdays volume is very interesting.

PNO took out major resistance of 1c + 1.1c & appears to have broken the downtrend line on more than avg volume. It is said to launch a bio product onto market this month (the marketing side is the key IMO), so again watch volumes & exercise caution as this one is a typical P&D.

Again ORD has been making interesting moves recently, so watch closely.
I will be waiting today for a bounce play on ADO

GL all
JL