TAG OIL : Jan. 20/10 Update
On December 19, 2009 I wrote:
“TAG Oil ended a volatile week of trading and closed at $2.45 on volume of 263,000 shares. Today’s close saw a gain for the week of $0.85 [+53%] and a strong volume for the week as we saw 1,165,000 shares changing hands.
I anticipate next week will see further profit taking and perhaps some retracing of the recent gains down to the $2.10 to $2.20 range which I believe is a great first support level before we see a move upward to test the recent high at $2.90.”
It is now a month later and Tag Oil broke through my first level of support at $2.10 and sold down to $1.81 on January 11. As you look at the chart you will notice that volume has steadily increased and today 415,000 shares traded, the highest daily volume in over a year. The stock has broken out on the upside and I expect that tomorrow will see further gains before we see some small retracement of these 7 up-days, back to possibly the $2.20 level, the first support level.
When you consider that the DJIA sold off 119 points today, the Tag Oil trading activity was very bullish.
