Early Weekly Chart update OK folks, it's lunch ti

Early Weekly Chart update

OK folks, it's lunch time on the Friday ahead of the long weekend and as expected action is minimal to non existent. Through 12:30 EST only 4.2 mm shares traded this week which is pathetic volume.

Obviously this tilts the advantage in favor of the bears who can move the stock down and/or keep it suppressed under such circumstances. We are looking at a close below the 20 week moving average at this point which still is not an indication of a broken trendline as we would need materially lower closes below the lows to give us an accurate trend reading. That however, would require more volume.

Next week is a holiday shortened week so expect further light volume and a stagnant PPS unless some production news breaks, but the base case expectation should be for sideways trading.

The important thing to remember is that even if there is zero news about W. Texas or Belize, Treaty continues to pump oil at roughly 300 bpd from Shelby. This means that in November a million plus in revenue, as compared to 13,000 in 2nd Quarter revenue will be shown on the 10 Q. I am certain that Treaty will make sure that the markets are aware of ongoing production via their run tickets, and that should give people enough reason to buy at these levels to stabilize at a nickel if not run the price a bit higher going into November.

Rinse and repeat, with the advantage of 90 days of oil production, for the 10K and 4th quarter 10 Q that we should get in early 2013, and Treaty will show back to back million plus revenue quarters as well as consecutive quarterly revenue growth. With even 300 bpd that is enough to put the bears away for good, and of course with any other new wells coming online that would only magnify the surge in the stock.

Have a good Labor Day weekend.

[IMG]http://i.imgur.com/JJSFJ.png[/IMG]