TAG OIL Inc. Update: February 22, 2010
Last week on February 16, I wrote:
“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.”
Today Tag Oil did retrace some of its recent gains, closing at $3.20 after selling as low as $3.07 early in the session. As you can see by the chart this sell-off shows the stock bottoming out at the lower line [GREEN] of a short term 3 week channel. Today was the fourth straight lower-close day and I expect Tag to begin trading back up towards its recent all time high of $3.75 which then could cause a run-up to the $4.10 to $4.25 levels.
I do caution however that any prolonged weakness the rest of this week or a failure to break through $3.75 could suggest a further sell-off down to the lower channel[RED] line at the $2.45 level.
