Market Direction: Doubts about the strength of the economic recovery in the US resurfaced overnight when consumer confidence figures were released. The index came in at 46.0, well short of the expected level of 55.0. This release is likely to play in the minds of traders in the lead up to the release of December quarter GDP numbers on Saturday morning (AEST). For this reason I expect weakness to continue for the rest of this week.
BCN/BCNOA: Technically BCN needs to hold the 2.6 cent level for the cup and handle pattern to remain in play (Breakout 3.1 cent close, target 4.2 cents). The stochastic looks set to cross soon, the RSI is flat lining just below 50 and the MACD is declining although the rate of the decline is slowing. News Due: Confirmation that exploration work has started at the Barlee gold project. Disclosure: Holding BCN, BCNOA
ADO: In a strange days trading yesterday the stock was sold off aggressively before significant buyers moved in causing a recovery that nearly saw the stock make up its losses only to be followed by another high volume sell off which saw prices test the days lows again. The Bollinger bands are still tight at the moment and the price continues to respect the lower bounds of the uptrend channel which started in February. News Due: Further license agreements for the company's Mix & Go technology. Disclosure: Holding ADOO
SSN/SSNO: The company released a corporate presentation for delegates attending the Australian Resources Conference yesterday which was well received by the market. Technically the chart looks pretty good with the stochastic crossing over yesterday, the RSI rising and the MACD sitting just above its signal line. I bought some SSNO and decided to hold overnight. News Due: Commencement of fracturing operations at the Gene#1-22H well in mid-late March. Details of the upcoming drilling program at Bakken. Disclosure: Holding SSNO
STI: A bullish Marubozu candle was formed yesterday with the low and the high being the extremes of the days candle and the price closing at the days high. The chart indicators look bullish with the stochastic, MACD and RSI all rising but not anywhere near overbought levels yet. Clearly the company has a busy development schedule in the near term, including a potential acquisition. This will require substantial capital. I will be contacting the company about how they intend to fund their programs over coming days. News Due: Launch of the company's pharmaceutical arm in Australia. Results from trials of ImmunoXel on Aids patients in Nigeria. Further details on the development of the company's Inhalation Drug Delivery Platform. Details regarding the acquisition of a pharmaceutical manufacturing facility. Disclosure: No Stock Held
