whats up ?, page-2

Hey Abuman,

There is no reason I know of for the weakness in ARQ, I think that it's just general sentiment towards the oil sector and as you mentioned a bit of a lull in activity.

If you look how much ARQ moved up between the start of the year and now I suppose a bit of a retrace was on the cards, especially with the volatility of the oil price. It is good that the oil price has retraced gradually to the low 50's (rather than falling off a cliff), this has hopefully reduced OPEC's need to increase production, which is important as US stockpiles have grown significantly. Hopefully prices around $50 won't hurt economies too much either, although the jury is still out on this! Another positive that you referred to in another post is that people now perceive that oil in the low 50's is cheap, it's an important change of perception.

I'm hoping that ARQ will pick back up when the quarterly is released and when they spud their first oil exploration, both of which are due in the next 3-4 weeks. From then on it'll be back to back oil explorations as I'm sure you know, price movements will depend on results.

So I wouldn't be too worried about the short term price movements, unless you're in ARQ on margin then it's a different story. I'm holding, I think it's just a matter of riding out this volatility for the next few weeks, the majority are holding tightly. From a chart perspective ARQ appears to have support at $1.74, if it breaks $1.74, $1.50 becomes a possibility, however with the events I mentioned previously I believe this to be unlikely.

That's my 2 cents worth.

Do your own research.