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CUP WITH HANDLE


Pan Orient Energy

07/01/09 09:23:42 AM
by Koos van der Merwe

The technical chart pattern of Pan Orient Energy looks interesting.

Security:   POE-V
Position:   Accumulate

The principal activities of Pan Orient Energy Corp. (POE-V) are the exploration and development of petroleum and natural gas reserves in Alberta, Canada. It holds properties onshore in Thailand as well as interests in subsidiaries with properties in northern Alberta.

FIGURE 1: PAN ORIENT ENERGY, DAILY
Graphic provided by: AdvancedGET.
 
Figure 1, a daily chart of Pan Orient Energy, shows the following:

- The price has fallen from a high of $15.79 in December 2007 to a low of $2.82 in February 2009. As of June 30, 2009, the price has risen to $5.75.
- The pattern formed is a cup & handle pattern with the handle resistance at $6.70. A break above this level suggests a target of $10.58.
- The price is at the low of the Donchian channel, suggesting a possible rise in price in the near future.
- The relative strength index (RSI) is, however, suggesting further weakness, but do note that when the stock price was at its lowest point of $2.82 in February and then started to move upward, the RSI was at $37.11. As of the date of the chart, the RSI was at $49.14.

This is a stock I will consider for my watchlist. As the price of oil rises and the extraction of oil from the Alberta oil sands becomes more profitable, the price of POE should rise.




Koos van der Merwe

Has been a technical analyst since 1969, and has worked as a futures and options trader with First Financial Futures in Johannesburg, South Africa.

Address: 3256 West 24th Ave
Vancouver, BC
Phone # for sales: 6042634214
E-mail address: petroosp@gmail.com

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Date: 07/01/09Rank: 4Comment: 
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