nicely heading north

I think there’s a bit more to this than yesterday’s gas ANN. Something else is at play here and it all looks good. Gut-feel tells me that something big is in the wind for DLS in the not too distant future. Perhaps a long awaited elephant JV. To keep the SP bubbling along in the meantime we have the current oil and gas drilling program.

The increase in volume about 2 weeks ago (8M and 11M) was a trigger for a technical breakout and confirmation of DLS’s sound fundamental story. This in my view was also the trigger for “something else positive” is in the wind for DLS. The increase in volume over the past 2 days (37M and 27M) would be momentum day traders jumping on the bandwagon and stop losses being triggered as they jumped off into the rapids. Sheep syndrome ring a bell?

Now we’re back to the sound fundamental story, significant technical breakout on volume as per 2 weeks ago, an improving Canada gas story, imminent oil and gas drilling program about to start, plus the various “big-ones” in the wings we are all waiting to hear about but the market has yet to appreciate.

At least we’ve seen some early warning signs of what will happen to the SP when the good news starts to roll along and momentum takes over. I still believe that we’re looking at a DLS SP of over 50c by this time next year, but I’m sure the day traders will create plenty of volatility swings on the way.

Mensa