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TAG OIL Update: March 30, 2010

Tag OilA little over a month ago I wrote:

“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 $2.45 level.”

Tag Oil subsequently sold up to $3.45 but was unable to challenge the $3.75 level and began a sell-off that has taken us to today’s low. As you can see by today’s chart Tag Oil broke down through my predicted support level at $2,45 all the way down to $2.15 before closing at $2.24. I have drawn a support [RED] line begun late last October. Tag Oil penetrated this support line briefly today before rebounding and closing higher. I believe this support line now becomes a solid area for adding to, or initiating long positions in this oversold stock. The first level of resistance is at $3.00 to $3.10. [Upper RED line].

Tag Oil Chart

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