daytrade diaries... september 28, page-2

Todays Picks

ARM: I expect ARM to resume the uptrend this week with the price reaching fresh highs. I still have a target in the high 50’s.

THX: Fantastic assay results from hole TPCRC019 on their Thunderball project led to a major gap up in THX’s share price on Friday. That leaves a rather large gap on the chart which will probably narrow, but not necessarily close. In Friday’s announcement the company said that TPCDD026 has not yet been assayed but a visual estimate has been given at 4.5% U308. Therefore we may see an encore performance in the share price when this result hits the market so I’ll be looking for another entry in the mid to high 30’s for yet another trade here.

IFS: Steady as she goes and still holding awaiting further price activity.

RED: We finally appear to be getting the retrace in RED’s price. Any further weakness in the gold price could see us at 10 cents or just under but I seriously doubt that there is much further downside than that. The wise Owl outperform recommendation issued on Friday may stop the retrace in its tracks.

IMA: There was some encouraging buying during Friday however the price got knocked down just as quickly. On the chart the price appears to be approaching oversold levels and I also not some bullish divergence in the MACD histogram with the bars making higher lows whilst the price has been falling. IMA is one I’ll be watching for trading opportunities closely this week.

BLY: Closed position at 31 cents when price turned down for a 2 cent profit.

BGD/BGDO: No change; still waiting for further signals to identify trading opportunities.

OVR: I bought more last week when I found out that the sellers had finished. I believe the downside risk here is limited and the price has been being held artificially low by the seller. The price recovered a little towards the end of the week however we need more volume for a sustained recovery to occur. With $1.5m in cash they’ll need to raise some capital at some stage but their burn rate is quite low at the moment. I am on lookout for substantial shareholder notices here. The company is lucky that the top two shareholders are very supportive.

MEU: I sold at 17.5 cents on Friday but MEU is now firmly on my radar due to their proximity to Rex Minerals which has gone from 50 cents to $2.50 in the past couple of months. I’ll look to buy back in on any pullback. Indicators are approaching overbought and there is negative divergence in the MACD histogram so that opportunity might occur this week.

ATI: Following the announcement about the appointment of the Fortescue Metals exective to ATI I expect some trading opportunities to eventuate here and will watch closely.

Good luck this week everyone.