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IOC update 9/6

June 9th, 2008 · No Comments

There is not much to say at the moment, except that we’re waiting for them to finalize the well. The previous DST test, the first they did at Elk4, produced very promising results, they were better than the first DST at Elk1. But there are a couple more to come when they drill deeper.

So let’s look at things from a technical point of view. We have rebounded nicely, and what the chart says is that there is room for more:

We think any moment now the MACD can turn positive again, and 30 would not be a very big resistance. With the RSI at 58, we’re not overbought by any means, so it’s all systems go for the moment.

Having said that, technical analysis is of limited value here. We’re waiting for news that will be definitive. We don’t know whether they’re going to publish interim results, or whether they’re going to drill to total depth (which is, after all, only about 150 meters more, and they must have drilled already quite a bit of that).

So it’s waiting, and good to see that there are buyers. And why wouldn’t there be, the first DST test produced some very promising results.

Tags: IOC