TAG OIL Update: February 16, 2010
On February 3, 2010 I wrote:
“As strong as the TAG OIL move has been, I am always looking for such dramatic moves expecting retracement of some of the gains. As a strictly technical opinion I fully expect that tomorrow may see TAG OIL trade higher before retracing this weeks gains and possibly trading down to the $2.75 level. As the stock has shown such bullish moves during the past few months I fully interpret any pull-back as a great opportunity to buy stock or to add to existing long positions. ”
Two days later Tag sold down to $2.82, and as I suggested, became a great buying opportunity. Today we experienced another run-up to close at $3.71. the high of the day and another all time high. As you can see by the chart Tag is once more trading slightly above the upper channel [RED lines]. Having closed at the high of the day I expect more buying in the morning. As I have suggested in previous Tag articles, the stock has once more gotten ahead of itself. I would expect some retracing of these recent gains and look to any pullback to the $3.00 to $3.20 level as another buying opportunity.
Great stock enjoying a tremendous 4 month run.
