daytrade diaries... january 21

Originally posted by highlandlad ↑

Todays Picks

With commodity prices falling heavily overnight due to the strengthening USD and concerns over Chinas economy, I expect we are in for a tough day here. I wont be at all surprised if we see our market fall by even further than the futures are currently indicating. Good luck trading today; I think well need it.

PEN/PENOA: The uptrend line which began in January was again respected yesterday. The stochastic is still falling but the MACD and RSI are both rising. Yesterdays volume was again healthy and I see no reason why the uptrend wont continue. I expect the price to reach at least 6 cents very soon. News Due: Uranium resource estimates for the Lance projects.

ORD: I took some profits yesterday at 7.1 after the great run and it turned out to be the correct decision. Looking at the chart the stock still has potential for further gains with the target of 7.4 cents from the cup and handle pattern still in play. News Due: Development plans for the Bauxite project in Laos. Commencement of ground EM surveys at the Copper Flats project.

VLA/VLAO: I managed to sell VLAO on the open yesterday at 8.2 cents and did a few further trades dueing the day for a profit. The price fell sharply throughout the day giving back nearly two thirds of the previous days gains. I am still holding 100K options and will look to buy more should the price fall even further. This is quite likely as T+3 traders exit their positions over the next two days. Given the results from the phase I trials which saw tumours shrink or stabilize in 55% of patients I believe there is potential for VLA to perform well in coming months. Some caution is warranted because the company will need to raise some capital in the near term. News Due: Further details of program for phase II trials.

ADO/ADOO: Having read over the licensing announcement from the 13th of January I decided to take a position in ADOO because of the likelihood of further licensing deals in the near term. The stock has already pulled back sharply from its high of 10.5 cents on the 15th of January however the 50% fib line is at 5.6 cents so it is possible that the price will reach that level. Because the options are exercisable at 1.2 cents I have chosen to buy them since they are trading at a 1.4 cent discount, which is an indication that holders believe that the head shares will fall further in the short term. News Due: Further licensing deals for the companys Mix&Go technology.