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Not my opinion, but worth a look.

Catherine Davey
Hardman Resources Ltd (HDR)
By Catherine Davey, 15 Jan 2004
Hardman Resources Ltd (HDR)

Hardman Resources puts a lot of other energy stocks to shame. What's next?

Rare

HDR has been around since 1990. After rallying in 1991 and 1992, it gave back all the gains by 1995. This formed a potential double bottom pattern between 3c and 65c. A double bottom pattern rarely has a vertical distance as large as this one, but the power of the double bottom pattern can't be underestimated.

Large Scale

After making another test of the 3c low the price went into a classic bottoming pattern with big mover potential. For five years HDR traded a tight range between 3c and 9.8c. When this range was breached to the upside HDR entered an enormous uptrend. Part of that uptrend was a breach of the 65c highs of the double bottom from the early 1990's. The target of the large scale double bottom pattern was the vertical distance of the pattern added to its highs. This gave a projection of $1.27.

Dead cat promises

HDR never made it to its double bottom target. Instead it reached a high of $1.08 before entering a major correction to a low of 38.5c. A dead cat bounce took the price back to a high of 92c. This price then collapsed again finding support half a cent above the previous lows at 39c. Thus a another potential double bottom pattern was formed.

Outlook

The close above 92c confirmed the recent double bottom pattern with a target at $1.45. HDR tested but rejected the 2001 highs of $1.08 when it rallied above it on an intraday basis but could not close above it yesterday. HDR could consolidate before it makes the next attempt. HDR has a habit of giving back all its gains very quickly, so it could even come back all the way to the original breakout point before resuming the uptrend.

Support:- 1.04; 0.80; 0.62

Resistance:- 1.08-1.14; 1.27; 1.45; 1.62; 1.78