The tiny Irish stock on the brink of landing 'the first' post-sanction oil deal in Iraq. Ref 'Fleet Street Letter' 12-04-04..

Not really a chartist myself but this was posted on another board by a chartist guru, everyone seems to have alot of respect for him, and he has been right on the money so far, with his calls about PET, he predicited it would go over 125 pence before announcements back in June

Here is his post, perhaps the chartists amongst you can explain this to us all


pet,

up some 6% and rising. the march goes on.
once falougah has been cleared then we can see pet hit near 2

very interesting technical things are happening.

- 9 day and 18 day mas are converging
- 9 day ma is providing support to the daily movement cycle to the stock
-18 day moving average is providing support to the mid term movement of the stock price
- all this convergence is happening at the apex of a large 10 month span triangle that started with the start of this year and have now reached the apex.

ALL FORCES ARE CONVERGING AT THE EYE OF THE PET STORM AND WE ARY SITTING RIGHT THERE THESE DAYS. EXPECT CONFLAGRATIONS, FIREWORKS AND EXPLOSIONS, OIL AND GAS ANY DAY!!

May the force be with you.

Is there any chartists amongst us, who can give an opinion on the info above?

Tokyo: There is no real standard as to what moving average to use except to say that end of day charting is normally based on 10 and 50 day averages. Intra day I also use 9 day and 18 day ma's because it is slightly tighter in giving signals and many of the City Traders use it...and using it you can project a line of resistance to hit 2, or thereabouts.

Having said all that, I agree with the post, but I do not think the fall of Falluja will be the reason for PET's SP movement, it is more fundamental...news of a contract of some sort. Clearly after such a recent uptick the SP needed a period of consolidation before another major movement in whatever direction it takes.

You can buy at 114p now and it may drop more as the day develops depending on sentiment. John

Thanks John, far more of a fundamentalist myself, and agree it is of course going to be the fundamentals that push PET sky high, but never hurts to look at both sides, charting is something I indeed need to study when I come back to the UK in December - Any worth while books you would recommend, something basic to start me off with and then a couple that dive into the technical side of charting.

Tokyo

The chart above shows much indecision, i believe this has been manufactured by the market makers. The volumes are small with occasional spikes and each one is accompanied by large bodies within the candles. The 10 and 50 day moving averages are close to each other, however, this did break yesterday. i do believe that this shows the share is 'basing' before the next major move. 110 has proved to be a point of support for now. a surge above 120 would be the beginning of the upswing with that price itself becoming a new point of support. Indecision and manipulation seem to rule at this time!

Using the powers vested in me by the ancients, I can see the clouds gathering above the sand, is it a harbinger of doom? No its the burn off from an untapped well. waiting for the Petrel to soar in with the appropriate machinery to extract the black gold and turn it yellow in our pockets.
Here the crystal ball starts to fade and I resort to fundementals. The only similar company to Petrel, I know, is Cairn Energy, trading at approx 350 at the start of the year with a current share issue of 180m today they trade just under the 15.00 (down from 15.00 after neg news earlier this week) making a mkt cap of 2.7 billion. Cairn share price rose after license agreement were signed on a field that is a minnow to current estimates in Iraq, nevermind exploration potential.
So Cairn have a share issue of roughly three times that of Petrel with little poss' of producing similar vols', pro rata how will this affect Petrel? who knows!!! Remmeber, I believe it was the John Teeling email of last week, IT COULD BE WORTH BILLIONS. not one but two or more. if you divide billions by the share in issue 66m, 2.00 prediction is soft!!
It also poss' that my brain is going soft with all this waiting, so ignore my post if you find it a bit ragged on facts.

Tokyo - GOO still looking healthy. Write up in the Guardian on Tuesday bringing the Peru news to the world. I like the look of it, could be another one of those lovely oil charts that we have seen so many of this year. I can see my PET profits going elsewhere very quickly!

Charts are no use if you are holding for the big news to break, good news up bad news down, keep it simple.

aldwickk: I agree with your sentiment...in the case of PET charting is meaningless at this stage.

Tokyo: Do you really want to get into charting? There are lots of textbooks on the subject which I am sure has made lots of people rich.

I have noticed that over the last few days the total sales/buys have been very close to each other. Either the MM cant get the stock or they do not want to hold it over night. Anyone got any ideas or an alternative reason. Graeme.

Graeme: Re matching buying and selling on recent PET stock...I would hazard a guess that the MM are neither short or long...just balancing book. This is a binary bet to them it either goes up or down depending on the news out of the Middle East. Suggest you scroll back through this BB for an earlier excellent comment on how MM's work.

if its an over night thing the MM's must be breathing heavy every close/opening thye go through, come to think of it so am I.

A point to add to johngtudor's comments. The post by gra1969 (703) shows the oscillations in price over the last week. Up goes the price with buys; in come the sellers and down goes the price, and so on. Generally, keep a decent margin between buy and sell; where the MM makes his money. But if, say, you want to bring sellers in, just narrow the spread for a while. The MM is not having to hold stock. What an ideal share: just let the price move with the flow and rake in the margin!

Eric (topped up this morning art 115.7; in profit within 2 minutes; could have bought cheaper an hour later)

What a boring day!!,can i claim "Twat of the week" award ?.
Last week i sold some PET to buy FOGL on launch day PET @ 82p and FOGL @60p,and last night i sold FOGL @ 56p and bought PET back @ 1.12.!!!!!!!!!!

regards,
Dexter

He he thats quite funny. Sorry, but it is!

dexter01: I do hope, on behalf of all the BB followers of PET that your LUCK does not continue in the same vein. With luck and a fair wind you might soon recover your loss. But please tell us if you plan to sell your PET holding...that is something we need to know!! Have a great evening. John

dexter01 - Sorry to hear that mate I remember you saying last week you had sold some, Really sorry because you and I kept this thread going for quite a while by ourselves, you sold @82p, not bad considering you originally bought @ 29p, 300+% is not bad on an investment lets hope you get the same 300+% on this lot you bought @ 112pence.

Wishing you the best of luck pal

Tokyo Nick

Im sure that you will recoup your losses and significantly increase your worth in the next few weeks. It's not really twat of the week, cos we have all done stoopid things havent we, so there are loads of em! Best of luck...JJ

Dexter. You took a chance but we've all done it. Only hope your bad luck is over. I have placed stops on Pet incase things go belly up but Comdirect only allowing tranches of 2500 a time so not only will we take a hiding on bad news, the brokers will take their bit as well. z