STT Week Start - 20th Oct., page-28

Entry for STT List

PCL - Pancontinental Oil and Gas NL
Petroleum exploration company with projects in Australia, Kenya and Namibia.
Market Cap: $53M
TA Pick
Current SP: 4.6c



Chart Patterns:
->Bullish Pennant
The chart has formed a bullish pennant and today's action shows a temporary upward break out of the pennant.
Some more volume is required to give the pennant pattern significance. However the chart is looking good. The sp could increase about 60% to 7.4c over the next few weeks based on the pennant.

->Cup and Saucer
There is a general cup and saucer pattern which is also quite bullish.

There are some positive announcements expected which adds fuel to the speculation and therefore chart patterns.

Volume:
Recently the volume was decreasing steadily on the red days and is currently increasing accompanying an sp increase.
Generally, the volume traded is quite high on the green days as opposed to the low volume on red days.

Momentum:
The RSI and momentum indicators show that there is going to be further increases, at least for the very short term.

Upcoming positive announcements:
-> News regarding L6 farmout deal based in Kenya between PCL and FAR.
-> Announcement regarding seismic data from project in Namibia
(Apologies for the shoddy FA)