Higher low pattern holds on daily chart In yester

Higher low pattern holds on daily chart

In yesterday's post I showed a trendline connecting the daily chart lows from June onward, and it clearly showed that yesterday was another hit of that support trendline.

http://investorshangout.com/post/view?id=1742...post_name=

Today the stock popped back up, hitting the 50 DMA at one point and ultimately closing above the 20 DMA. Today's move was forecasted by the trendline and it is showing that a move above the 50 DMA is probably weeks if not days away with or without news catalysts.

The catalyst we are waiting for right now is the 10 Q. With the financial information, smart money can start plugging datapoints into their valuation model and invest accordingly. The tape is showing that the lows are getting gradually higher, which is a common bottom formation in stocks, which means that the lowest that someone is willing to sell is gradually getting higher. Once again, this is a TREND indicator and a trader I like to trade with trend.

In other news I completed my course in Petroleum Fundamentals and I highly suggest that other non oil industry investors take some of the online courses offered by PETEX so that you can improve your understanding of not only this play but other E&P plays to come. I will definitely be doing follow up classes in the near future to expand my understanding and grow my contacts, but with what I have absorbed this week alone I have enough information to get something out of visiting the wells.

Once again though, it's almost laughable just how little the bashers know about this industry. I think we've all known that but having spent a week with people who are experts in this industry, the bashers criticism of the stock is really something like children's graffiti scribbled on the wall.

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

[IMG]http://i.imgur.com/XBemN.jpg[/IMG]