Alkane Energy - Back to 100p
Says Zak Mir of Zaks-TA.com
The stock market is full of hyperbole, especially from tipsters. I chanced upon Alkane Energy today and my immediate reaction was that it is the best stock chart I have ever seen.

This may sound somewhat melodramatic, but I do not think that it is an exaggeration. As all traders know (including Nick Leeson if you are reading), the way to make real money is by betting the bank on the really big calls. That is the aim of my site. Nick, if you're still there, now is the time to go long of Alkane Energy - it has to be a better bet than a Nikkei arbitrage.

Although a chartist is fully allowed to ignore the fundamentals and look purely at the technicals, the fundamental background to Alkane is a company that declared losses of 284,000 pounds in its last set of results versus 20 million pounds in the previous year. This is a great recovery situation just in financial terms and the hopes of the bulls are carried in the form of a very extended base on the chart below 20p that was in place for nearly three years. The charting rule is that the longer the base, the bigger and more powerful the eventual breakout. This would imply that we are looking at the possibility of a full return to the highs seen at the start of the decade towards 100p.

Only an end of day close below the 10 week moving average on the weekly chart at 19p would even begin to cast doubt on the upside. The minimum expected target in the near term would be the 40 week moving average now running through 40p.

ft- do you agree the chart is forming a double bottom support level here imo this is completely oversold!.

Lizard .... though your observation is no doubt correct, there are any number of shares in the market where this applies ....... the prudent approach, and i do have to keep smacking my fingers away from the buy button, is to do nothing until the markets stabilise, and that should also include above 5620 for FTSE and 10940 for Dow.

sp down from last years high of 59p (int day). bloody hell. and all this because they reduced losses by 68%?. YES REDUCED NOT INCREASED!

i deal in china may start the recovery!. some imo unjustified battering this stock has taken!.

China as in country or as in market trader? ...... I still have an innate aversion to dealing in China as I have seen some pretty uneuropean ethics in practice from quite high up the food chain.

many opportunities in china- last week caterpillar (nyse) signed an agreement in china to develop the worlds largest cmm project. alk have according to website been approached by delegations from china russia india.

there are many disused coal mines in china.

theyre getting closer to 1.00p ;)

isn't everything atm!. look at vog.

you would have thought the worlds natural resources had dried up overnight!!

Hopefully an England win this world cup will give a lift to the FTSE! Alk at 14 p, how much lower can they go?!

don't gdp i couldn't take it!- look at the mkt cap alk- not the only bargain around atm after this sh$t run!.

I'm considering cutting my losses and running, what do you guys think/

imo you must be mad!. i'm no expert but the results weren't that bad imo. they reduced operating losses by 68% bought two more mine gas plants and pro2 trading at record levels in first 6 months. imo alk is a long term hold. gdp i'm also sitting on a big paper loss but will hold for a expected recovery and a maiden profit in 06. don't rule out investment in china russia or india big mkts.

what does 'imo' mean?

come on gdp 'IN MY OPINION'

oh ok I have only used this for a year and have no idea what your slang means.

so I have to ask

gdp- are you in goo?.

http://www.goldoilplc.com

are you still in gdp?- there have been a few article tipping them one in business last week and another on aim ofex shares will try to get link!.

Yes I havent ditched just them, it is hard to accept the losses I have. If you could get the link I may be persuaded to hold a while longer. Thanks, GDP.