Magellan Energy, Ltd. (MGLG)

[di4]

From Raging Bull

MAGELLAN ENERGY LTD
Daily Commentary


Our system posted a BUY-IF today. The previous SELL recommendation was issued on 02.26.2007 (11) days ago, when the stock price was 5.0000. Since then MGLG has fallen -89.40% .



A bullish pattern has developed and a BUY-IF alert is issued today. The task is now to confirm the validity of this bullish pattern. We will guide you through this process but the prime star of this game is nobody but you. First you must do your homework. A good starting point may be to keep an eye on after-hours and futures trading to get preliminary hints about the direction of the market. Related news, events, economic data, and the world stock markets should also be closely followed prior to confirmation session.

There are three possible cases of confirmation. You have to follow the next session carefully to check if these cases will hold or not:

The market opens with an upward gap, signaling a bullish sentiment in the first case. Your benchmark will be the opening price. If the prices stay over the benchmark, go long. Any white candlestick with an upward gap is a valid confirmation criterion.

In the second case, the market opens at a level, equal to or below the previous day’s close. The benchmark is that closing price. If prices during the session stay over the benchmark, go long. Any white candlestick closing above the previous day’s close is the second confirmation criterion.