Market Direction: After a small rise on Wall Street to just above 11,000 and flat to slightly declining metals prices out market is likely to drift down a little today.
ARM: I would have liked a little more volume yesterday but it was nice to see some follow through buying lift prices again. On the chart the slow stochastic is still rising but approaching 80. The MACD and RSI are both looking very bullish but are no where near overbought. There is a gap down to $1.045 which may get filled at some stage but with drilling due to start any day I expect prices to move further ahead. News Due: Commencement of drilling operations at the Capricorn South East Manganese Project. Disclosure: Holding ARM
OVR: The company was queried by the ASX yesterday about the recent price and volume activity but gave a standard reply that there was no explanation that they were aware of for the movement. That brought out a few sellers who knocked the stock down to the days lows of 9.6 cents before buyers re-entered and pushed the stock back up to 10.0/10.5 cents. Yesterday's action was pretty much as I expected with the price starting out strong and hitting my 12-12.5 target before profit takers pushed it back down. After Friday's rise, the price was outside the top Bollinger band so yesterdays fall brought the price within the bands again. I now expect a short consolidation period in before activity picks up again as the 2010 exploration season gets underway. News Due: Details of the exploration program for 2010 at the Yukon Base Metals Project in the Yukon, Canada. Disclosure: Holding OVR
BCN/BCNOA: Volume failed to eventuate yesterday however the signs of an imminent move are strengthening. I noticed the buy side at 2.9 cents increased sharply during the afternoon with one 4.1m order placed at that level. On the chart the MACD looks set to cross as early as today, the slow stochastic is rising and the RSI is flat. Some more volume is needed to convince people that a substantial move is underway. News Due: Drilling results from the Barlee Gold Project, . Disclosure: Holding BCNOA
DDT: The company has secured the first commercial agreement in the textile industry using the company's covert DataTrace DNA textile signatures against counterfeiting. The same announcement also mentioned that 3 global brand leaders are currently evaluating the technology to improve counterfeit protection and are expected to conclude commercial agreements within three months. The announcement resulted in a sharp rise in the stock but continuous selling throughout the day meat that prices closed lower than the open. Given this company turned profitable in the six months to December and has high growth prospects in the near and intermediate timeframes I think DDT is a stock to watch over coming months. Technically the stock looks excellend, apart from the gap down to 4 cents which looks likely to be filled in the next day or so if the selling continues. The slow stochastic has crossed up, the RSI is rising and has just passed through 50 and the MACD looks set to cross as early as today. News Due: New commercial agreements using VerifiTT for use in textiles by three global brand leaders. Further developments involving the companies other products. Disclosure: Holding DDT
CRC: With 5 drilling rigs currently working on the Dargues Reef deposit there should be a steady flow of results coming from the company over coming months. The current JORC resource stands at 286K oz however the latest results released yesterday are likely to increase this. Judging by the yesterday's candle there were plenty of people sellingafter yesterday's results. There is a gap to 15.5 cents created by yesterday's announcement however to be honest I'd be surprised if this gets filled. The indicators are giving mixed signals with the slow stochastic falling and the RSI and MACD rising. I'll be watching closely for a good entry in coming days because I think CRC will perform well if the gold price continues to strengthen. News Due: Further exploration results from the Majors Creek Project. No Stock Held
CCU: The company announced a $3.25m share placement at 25 cents which represented a 25% premium to the last sale price. This puts an end to questions of short term funding. The company can now concentrate on resuming exploration at its Wonawinta Silver/Lead Project in NSW to upgrade and extend the current 47mt ag and 193Kt Pb. Resource. A reserve statement is due out soon with revised economics for the project. News Due: Reserve statement for the Wonawinta Silver/Lead Project. Decision to proceed to bankable feasibility study. Disclosure: No Stock Held
