Diversified Oil and Gas Holdings (DVFI)

[Imperial Whazoo]

I am looking at my real time charts and suggest folks who can do so look at the period between 2:30 PM on 8/15/06 and 9 AM on 8/16/06. I'm using 5 minute candles.

What I see happening on today's chart is a declining price chart, testing out a double bottom, on declining volume. The previous part of this double bottom test happened the end of the 8/15 trading day & the beginning of the 8/16 trading day. It reached .0175 and bounced. There was not any news that day. Lancaster had sent out a puff piece on 8/9 to reassure everybody, but nothing on 8/15 or 8/16. Or 8/14 either.

So, in my opinion, we are watching a testing of the .0175 bottom of 8/16. Look back at the 5 minute candles on the days I'm referring to. There was strong support at the .0175 - .018 level. Since there wasn't any news, this was just what it looks like: natural support. So, unless there is a penetration of the .0175 level on strong downthrusting volume, this chart is setting up for a retest of the old intermediate highs: at a bare minimum .024 without any news and probably .035 with news.

Thats what it looks like to me from a technical analysis point of view.

Imperial Whazoo