PSA 0.00% 2.1¢ petsec energy limited

chart for yogi

  1. 1,317 Posts.
    Hi Yogi,

    Thanks for your comments on the junior oilers and in particular your analysis and targets for Petsec Energy.

    You prompted me to go back and look at the PSA chart from June 1994 to June 1996 and compare it with the chart for 2003.

    The reason for doing so was because in many ways PSA today is where it was back in 1994 or earlier, just starting to have some success in the GOM with its cautious low risk, high reward strategy. Indeed this is how the company itself once described its position to me.

    The thing that stuck me about the 1994/96 chart is the "staircase" rise in the share price. From a dollar in July 94 it doubled to two dollars within a couple of months and then range traded (actually formed a terrific pennant) for the next nine months. In July 95 the share price broke out of the pennant and rose to three dollars where it again range traded for nearly eleven months forming another pennant at a higher level. It broke out of that pennant in June 96 running up to $5.50 in three months.

    The PSA chart for this year shows remarkable similarities. The price jumped from 28 cents to 37 cents at the end of January then range traded until the end of March froming a nice pennant in the process. It broke out of this pennant at the end of March reaching 65 cents at the of April. It range traded again until mid June, forming another pennant before breaking out of that pennant towards the end of June and racing to 87 cents. It has range traded ever since with the suggestion that is forming another pennant.

    The difference between the pennant patterns PSA has formed this year and those it formed over the period 94 to 96 is the time spent forming those patterns. In the 90's the pattern was 9 to 11 months long, this year the price movement is more impatient and the pennants have lasted little more than six weeks before the break out has occurred.

    Sooo... according to the charts there is a good chance PSA will range trade through July between 75 cents and 85 cents before breaking out of yet another pennant by the end of the month. This would coincide with you astrological signs, the company's June quarter report and the commencement of drilling at West Cameron. My next target is $1.05 by early August.

    Cheers all, JBC

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