Market Direction: A positive lead from Wall Street should help our market get off to a good start this morning however I expect it to fade during the day. Economic data from the US continues to throw into question the strength of the recovery. The big release overnight was the ISM Manufacturing PMI which came in weaker than expected at 56.5 versus a consensus of 57.7.
MHM/MHMO: There are reasons to be optimistic that MHM is about to turn. In a similar pattern to Friday, an early sell off was reversed yesterday as the buyers again took control with the stock closing at the days high creating another bullish hammer. Technically the stock is looking better with the slow stochastic rising the RSI back above 50 and the MACD rate of decline slowing. A close above short term resistance at 35 cents would be bullish for the stock. News Due: An update on the Silica project (Wacker AG) is due now. Plans for exploration on gold and base metal projects located in Tasmania. Disclosure: Holding MHMO
SSN/SSNO: The support at 2.5 cents held well yesterday despite temporarily dipping below that level. Volume was reasonably strong at 59m shares and higher than on Friday when the shares were looking weaker, indicating that a new round of buying support came today. Indicators still are not giving a buy signal however a close above 3 cents would be very significant in my opinion. News Due: Commencement of fracturing operations at the Gene#1-22H well in mid-late March. Spud of Ripsaw well. Details of the upcoming drilling program at Bakken. Disclosure: Holding SSNO
ADO: The CEO was back in the office from his overseas trip today so hopefully news is not too far away. The price is now testing the underside on the uptrend line that started on the 13th of January so hopefully a good day tomorrow will see prices back above that line. The stochastic has crossed up, the RSI is rising but the MACD is yet to turn. News Due: Further license agreements for the company's Mix & Go technology. Disclosure: Holding ADOO
OBJ/OBJO: An increase in volume and price yesterday signaled a new breakout could be underway. On the chart the RSI is rising, the MACD is looking likely to cross this week if prices continue to rise and the stochastic, whilst still falling, is approaching the oversold level below 20, and could turn soon. This stock will be worth watching for trading opportunities today. News Due: Updates on evaluation agreements with 3M, GlaxoSmithKline and an un-named FMCG company. Disclosure: No Stock Held
