retracement, page-3

I find plenty of Nana's predictions on the money. Her work on charts/fib ratios is first class and I always keep an eye on her posts.

For myself, I sold down GDY back in July when it was $1.58 and the price was starting to get a bit wobbly. I maintain it as a long term buy but over the short term I move in and out of the stock depending on both the charts and company activity.

Currently, the company is in a tricky phase with the circulation test. They have demonstrated real competence in terms of learning from experience and I think the market tends to take this into account. Completion of Jol 1 is likely to cause little more than a ripple in the market because GDY has already shown they can drill these deep, hot, stressed wells. The mistakes of Hab 2 taught them.

Now GDY are again climbing a steep learning curve as they experience the rigours of the trying conditions of the circulation test. By the time it's done they will no doubt know so much more about circulating high pressure, hot brine. In the meantime the current market is even more brutal and unforgiving than usual.

I expect the price to continue drifting down until the circulation test is done and positive results emerge. This market may even find this event a bit ho hum. I see a real kick along when the first generator is turned on and the pollies start showing interest. This event could be perhaps as far away as Feb 09. I expect the company's Christmas deadline to com and go at this stage.

Look at the charts and extrapolate the current decline out to Feb 09. Then see how Nana's numbers stack up.