TAG OIL: January 29 Update
On January 20, I wrote:
” Tag Oil broke down 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 to $2.44 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.
In fact TAG OIL [ticker symbol: TAO on Vancouver Exchange] did trade down over the next two days, bottoming out at $2.15. We have now seen 5 consecutive up days and today the stock closed at $2.50 for a gain on the week of $0.28. Considering that the TSX index sold off 249 points this week, the Tag Oil trading performance was great.
As you can see by the chart we are developing a strong support [RED] line that began in late October and which would provide great support at $2.15 to $2.20 should we see any retracement of this weeks gains. I do suspect that any retracement would first encounter support on the shorter support channel [ GREEN] line in the $2.25 to $2.30 levels.
