MPET

[Melf Elf]

As bula said, crude oil finished strongly at $58.65 - 1.52 up.
It may be a sign of rebound to $60+ after bearish trend
since July 13.

MPET closed at 3.05 on July 22, when crude finished at $58.65.  Yesterday, with crude at $66.00, MPET closed at 3.01.  Something doesn't seem right with some of these low-priced oil-related stocks 

With the stocks negatively diverging from the rally in oil, I'm thinking that, after a rally of 300% in stocks like MPET, the rally from $58 to $66 in oil already was priced into the stocks.  Oil is at new highs...MPET is down 27% from its early July high.

If MPET doesn't close back above the neckline, it looks vulnerable to a further selloff.

[wezard03]

It was a kind of consolidation period last week after short term rally from the
bottom at $2.75 on July 27 & 28 to the high at $3.52 on August 3.

MPET is sitting at $2.99 between 20 DMA ($2.98) and 10 DMA ($3.05).

http://stockcharts.com/gallery/?mpet

Once the positive update is announced about the drilling at the Sandhills-2
on the Isle of Wight, MPET may move higher and test $3.18 and beyond.
Open the following site and click "project overviews" of August 11.

http://www.blackrockoilandgasplc.co.uk/index.html

As of August 10, the driller reached 2.750 feet and they are expected to
reach the objective depth (3.700 feet) on August 15 or 16.

EOM

[wezard03]

in UK market on Friday, August 12.

http://finance.yahoo.com/q?s=BLR.L&d=t

Northern Petroleum (NOP.L) gained 12.00 (13.26%) to 102.50
in UK market on Friday, August 12.

http://finance.yahoo.com/q?s=NOP.L&d=t

Sandhills-2 (PEDL 098) licencees are:
Northern Petroleum (GB) Ltd  57.5%
Magellan Petroleum (N.T) Pty Ltd 22.5%
Oil Quest Resources Plc7.5%
Black Rock Resources (UK) Ltd 5.0%
Monrtrose Industries 5.0%
Oil and Gas Investments Ltd 2.5%

MPET may follow them this week.

[Melf Elf]

Five closes at, or below, the neckline.

[bula]

I'm betting on $70 oil within a month.  This is a swing trade for both MPET and GEOI.  Today they are hitting sub 20 on the stoch (oversold).  These prices look pretty tempting here even thought the chart is fairly weak.  I just like the sector staying strong with oil shooting higher.

Going in GEOI $13.3 and MPET $2.77 very large positions.

Good luck.
Bula

[bula]

Timing is perfect for MPET - support at $2.75, low stoch, moderate OBV.

[Melf Elf]

Good observation about the 2.75 support.  Applause.  That looks like important support since MPET has been acting weak, and not responding to rallies in oil. 

MPET would look alot better if it could close back above the neckline (red line) at 3.10, and would look much better if it could close above the down trendline (green line), currently at about 3.18.

You have a nice entry at 2.77..  Even if it only rallies to the neckline at 3.10 (neckline rises daily), you've got a nice gain of almost 12%.

Good luck!

[wezard03]

Although MPET has been down trend from $3.52 month high on August 3,
it changed the direction with volume on Sep. 1 & 2.

http://stockcharts.com/gallery/?mpet

MPET is sitting above 50 DMA ($2.85), 20 DMA ($2.71) and 10 DMA ($2.54).

MPET will test $3.18 registance.

[bula]

MPET finally finally finally hit oil yesterday.  This has not been announced in the US but I expect it will today and MPET could possibly see a very nice pop.  Currently $2.9.

http://www.asx.com.au/asxpdf/20050906/pdf/3s62sggh1g305.pdf

This is a great short term opportunity for a swing trade to $4+ possible this week.

Good luck,
Bula

[setravis]

Your pick is on the move in the pre-market.
+5.82%.......Volume......75,843

[Melf Elf]

With the stocks negatively diverging from the rally in oil, I'm thinking that, after a rally of 300% in stocks like MPET, the rally from $58 to $66 in oil already was priced into the stocks.  Oil is at new highs..

The "disconnect" behavior in these stocks is another one of those counter-intuitive deals.  Predictions of high oil  prices were correct, but it didn't translate into higher prices for the stocks. 

MPET is down 27% from its early July high

When stocks selloff that much, it could be more than just a pullback or a correction.  It could signify a change in trend.

That 27% loss was on August 12, when MPET was re-testing the broken neckline on the chart.

If MPET doesn't close back above the neckline, it looks vulnerable to a further selloff.

MPET now is down 52.4% off its early July high.  The summer oil rally already had been priced into MPET on the 300% rally into the July high.

Someone on CNBC this morning mentioned an old say on the floor of the exchange, "When the news is great...it's too late."   That seems to be the case with MPET when the news about oil at the July high was great.  It was too late for MPET, which dropped 52.4% from there.

Now that MPET has had that big drop, listen to what we're hearing about oil stocks.  The news isn't so great.  These stocks aren't real popular right now.

Hmmm-mm.... 

MPET traded as low as 1.95 this morning, right at the 200DA.  The gap is 1.81-1.89.  Might be worth putting on our radar for a least a pop.  Especially if it fills that gap.

[defenderyou]

MPET is my contest pick for the third contest. See the pick list!!! This is going to break out to $4 if the Udacha well comes in anyday now!!

[Terliso]

Looks like a good entry point Goodluck defenderyou

MPET is my contest pick for the third contest. See the pick list!!! This is going to break out to $4 if the Udacha well comes in anyday now!!

[fous]

Nice pick defender!(applaud) Breakout of a long descending trendline with above average volume confirmation. Good luck on the contest

-fousc

[Melf Elf]

MPET is my contest pick for the third contest. See the pick list!!! This is going to break out to $4 if the Udacha well comes in anyday now!!

Interesting pick, defenderyou. Applauded.

MPET put in a little "W"-Bottom and made the 2.06 target IN PLAY.  It now has put in a larger "W"-Bottom (drawn at the upper right of the chart), so it's got a better base from which to attack resistance.  Sort-term target depends on whether you use the left or right leg. 

For this base to be good enough to go up against that big top (in red), it looks like it's going to need better volume, and your Udacha well news could be the catalyst.   Good luck with your pick!