daytrade diaries... november 6, page-3

Todays Picks
BCC/BCCO: Along with many shares BCC was weak yesterday afternoon. MACD has now crossed down so we could see more time consolidating around this area. News Due: Spud date for Lee County well, announcement of successful production ramp up at Pompano well to 6-7 mmcf/day.

MHM/MHMO: Placement stock continued to hit the market yesterday and I managed to get a few more MHMO. I will continue to buy more until I reach my target holding. News Due: Completion of the acquisition of the Aluminium Salt Slag plant and progress on the establishment of a silica plant in Tasmania.

CCU: A strong performance yesterday with the price hitting a new high of 25 cents. I expect it to test this level again today but this time it should break through and stay above it with a target of 30 cents. There should be a trading opportunity here today. News Due: Further silver exploration drilling results should begin to flow in coming weeks.

ATI/ATIO: There is a nice pennant forming on the daily chart. I am still waiting for the breakout to occur with a move through 4.8 cents. Yesterday the price retraced a little and it may now test support at 4 cent before moving higher. News Due: Potential new projects to be brought into the company at any time.

BCN/BCNOA: The price is still weak with plenty of stock for sale on the screen. I think news will be required to move BCN up again but with good results I can see 3 cents being achieved in the medium term. News Due: Confirmation of commencement of the new drilling program at the Barlee gold project.

RED: With a gap on the chart down at 12.5 cents I will wait with my order there until it gets hit. News Due: News on project finance could come through at any time which would propel the RED price to new levels. They are also due to start exploration on their second Philippines project, Mapawa, shortly which should generate added interest.

QHL: Yesterday’s performance was much better with sellers being soaked up as new buyers entered the market. I expect QHL to be a strong performer in coming months. News Due: There is potential for news on more supply contracts at any time.

ADN: I will be looking to reenter in the low 20’s after the 11th of November, when the scrip from the share purchase plan is sent to holders. Given that this stock was issued at 19 cents it will be tempting for some to take profits. Hence I believe we will get the opportunity to buy in the low 20’s again prior to the release of the assay results. News Due: Assay results due in 3-4 weeks from the diamond drill hole at Rover 1 next to Westgold resources discovery.

Good luck today.