daytrade diaries... september 29, page-2

Todays Picks

ARM: The price held well in a weakening market yesterday and I still expect ARM to resume its uptrend this week with the price reaching fresh highs in the high 50’s. I think the next few sessions will be key in terms of whether my targets will be achieved in the near term.

THX: Well the gap was nowhere near to be seen yesterday. I was surprised by the strength of the share price yesterday. The long wick on the chart means I will most likely sit on the sidelines for the next couple of sessions until the price find its new trading range. However I will keep in the back of my mind Friday’s announcement about hole TPCDD026 which had not yet been assayed but a visual estimate was given at 4.5% U308. Once the price settles there should be another trading opportunity in the lead up to the next assay results. THX’s exploration project next door to SFR would no doubt be generating some additional interest in the stock. Perhaps they are planning to fast track some work there.

RED: Well the retrace in RED’s price does appear to be underway. Any substantial weakness in the gold price could see RED close the gap down to 8.7 cents. Still given my expectation of higher gold prices in the near future I decided to increase my investment stake yesterday to about two thirds of what I plan to hold (about 600K target holding with 400K bought to date). The Wise-owl buy recommendation appears to have had little impact on yesterday’s trading.

IMA: The price bounced back yesterday but volume was low. I suspect trading IMA is about to get interesting with results exploration due and the chart is certainly looking a lot better after yesterdays trading with the slow stochastic crossing up, RSI increasing above 50 and the MACD about to cross. Yesterday also saw some good publicity in the Australian newspaper.

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

OVR: No volume yesterday but the lack of new sellers is encouraging in that when news does come, assuming it is positive, OVR’s share price should be able to return to the teens with little resistance. Their Annual Report is due out in the next two days so I wont be surprised if we get some price sensitive news in the mix with that. Perhaps test results from metallurgical work being undertaken might indicate improved economics for the project.

MEU: The price came back slightly yesterday with indicators turning down in the short term with negative divergence remaining on the MACD and RSI indicators. There should be more left in this retrace so I’ll wait until indicators start to turn up again before taking another position.

Good luck with today’s trading.