Decided to take a position in SEA based on the strong moves in...

Decided to take a position in SEA based on the strong moves in Oil (and breaking higher over the weekend). Plenty of liquidity in Sundance Energy and with the recent two changes of substantial notices, we have seen two of the institutions that participated in the equity raise earlier in the year lock in gains for the quarter end. If this is the end (for now) to the insto selling, the hand brake should come off once more and see SEA continue to march higher towards the 9c+ region.

Having a quick look at the charts, I like the fact that the recent test of the 200 day MA in late August / September was respected and now seen a move to new highs for the stock. MACD is trending positively above the 0 control line, with the RSI moving higher, but not in 'over bought' territory. Stochastics are in 'over bought' range at present, however it's worth remembering that we often see large moves play out for stocks when this indicator is both 'over bought' and 'over sold'.

Iam looking for the 8.5c gap to be filled in the short term, with a move to 9c shortly thereafter. A close at 8.3c or better will signal this move is underway. Good to see the late Friday shakeout / profit taking into quarter end was contained, with a solid close back at 8.1c. A close above 8c will confirm the move higher is still in play.