Dana, further south, or is this the start of a rise?

[Rogue]

Well, after my escape with MGP I'm looking to oil stocks to top up the pot...

Dana (DNX) anounced good drilling results over the weekend, today the price is up 0.75p and the volume is high (at the time of posting 7.3 mill.)

However, looking at the Bollinger bands, they seem to be widening, and the price is outside the lower band. I realise no one chart can be taken in isolation, but there would appear to be no direct indication that after todays results (and articles in the weekend press) that this isn't just a small little blip and that the down trend will not be stopped. Problem with penney shares at this price is that it does not take much of a fall to hit your stop loss. I tend to set a 10 -15% stop loss. Would you say this is unrealistic on a share at this price?

This was a massive gas discovery, the price over this month has been going down. The expectation of good results obviously was not already built into the price?

From my past experience, I tend to buy on the peaks, so any input to reverse my trend of peak buying would be very much appreciated.

 

[paulperryman]

DNX.

Hello. I have just bought some of these today and could not believe my luck that they were not gapped up first thing. I have just printed the chart off iii and drawn the two parallels on it in order to determine the trading range ( I did this by eye before buying ). The top parallel is from 17.1p down to 14.3p, and the lower one is from 14,3p down to 11.5p. Thus the trading range should be from 11.5p to 14.3p at the moment...this is how I seek to avoid buying at a peak. I hope that this is of help...there are many other things to consider though, such as the overbought/oversold indications from the Stochastics/OBV etc. Paul Perryman.

 

[Cigar]

Don't try to guess bottoms, its a dangerous habit. (Most of us still try to..)
Have a look at http://www.themestream.com/gspd_browse/view_by_tag.gsp?auth_id=285375

This is Chartys list of articles and she has recently written about Bollingers

rgds

 

[Rogue]

Cigar

that URL you posted does not let you into the article??

It's the tops I worry about, more than the bottoms,So far, I have been buying near the tops, and then watching a steady fall... Typical hey!

 

[Rogue]

Paul

Thanks for the advise, I think I may well get in on this company today if the offer does not rise. I,ve watched them for a while. I don't no if I consider them a long term punt though. I'll print off the chart and have a look at the method you describe. Thanks.

 

[ChartMan]

I don't like the uncertainty of illiquid/penny stocks but...
a quick look at the charts show nice volume increases at all of the recent bottoms.Friday and today had nice vol. increases, and a gap up price rise today, so it looks like you are on the right side of the line.
Don't forget that the current trend is DOWN, and the slope is 0.6p/20 trading days.I say this because the timescale to rise to a peak is around the 20 day mark. At that time I expect the Resistance trend line to have fallen to 13.25p approx.So there's not a lot in it from a TA point of view. However, good news may make it fly....
Short term support broken @ 12.5 ish, with next support coming at 9p.

 

[Sparky]

DNX,has had some really good newsflow over the past 2 years, which you would have expected to move the price higher than its meager rises.It holds some exellent plots around the world, with great potential but most are still at an early stage.The movement in price up to the highs were partly due to good exposure on 'show me the money',if my memory serves me right, I think it was tipped twice on the programme and is still a big favourite of Tom W,I know that he mentioned it last week again on his site.
This is a good well managed company with a good longterm outlook, but it can be a very frustrating share to own.With regard to high vollume, if you look at the vollume historically you will see that this share is capable of large daily vollume, not always indicating a price move.Although classed as a penny share, it seems that this share is on a good number of so called good judges watchlists.I am sure that this share will in time double in price at the least,but from passed experience I would not hold expecting a big move up in the next weeks or months,if looking for a small short term gain then as you can see from its chart, it trades in an excellent trading channel.
For the record,I nolonger hold this share, but if you do buy then good luck and be patient.