prro options, page-11

Cav...

Trading today has been more stable - The sellers are not dumping their stock in a panic and are waiting for buyers to accept the offer... Buyers are not yet sure enough to pay any price so things are moving slowly.

Most of this is pending on the SPP... No-one likes uncertainty and the PRR market reflects that.

Refer to daily chart below

1. Fib 50% from the intra-day high seems to be providing some price support... 50% retrace is a very common anomaly and is often the point for a reversal. Its a psychological thing. Buyers think 50% from highs seem like good value.

2. We have formed a very short term down trend - That down trend resistance line is something to watch because the price moving above it may give us a signal that the selling has finished (Maybe but there is always more to it aka volume).

3. We have some Moving Averages coming up. The MA15 in particular should provide some price support. In Med/Long term uptrend's MAs often are points of reversal because they are "The average buying price/zone" based on a period of time... Again psychological price-point for traders and investors.

4. Volumes have been declining... Still way above long-term average volume but substantially less then the rally volumes. Kinda says to me that there are more believers holding PRR stock then non-believers who are selling. Perhaps most of the selling is just plain and simple profit taking... We will need to see volume break above its little down-trend in unison with the share price breaking out of its down-trend. This would be a buy signal.

5. Slow Stochastic is in over-sold zone and possibly will cross up to indicate a change in buyers vs. Sellers... So far this stochastic low is higher then previous low which tells me that the down-trend is weak and perhaps a direction change (up) is imminent... A cross up into the mid-section, with higher volume, with share price breaking its down-trend would be a buy signal... But we would want HIGH volume.

6. This is a possible uptrend line that would be our worst case target... Unlikely imo we will go anywhere near it.

Hope all this makes some sense...

Pat