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  STOCK TECHNICAL ANALYSIS

Our analysis is based on long term trends, and if they are promissing, short term analysis. First, we view the 3 year weekly charts, followed by a 1 year daily chart. This analysis allows you to view the larger picture and trend, rather than just looking at a short term prospective. This way, you can use short term volatilty to your advantage, if the long term trend is positive.

You will see a summery of the stock we are analyzing, followed by the 3 year and 1 year charts. At the end, you will see a technical analysis summery. That's it, to the point technical stock market analysis daily!

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Technical Analysis for March 13 2006

STOCK: AUSAM ENERGY CORP (AUZ) WEBSITE:
CURRENT PRICE: 0.40 TREND: POSSIBLE TREND REVERSAL
TARGET PRICE: 0.45+ RECOMMENDATION: SPECULATIVE BUY

Long Term Chart (Weekly 3yr) - To view the bigger picture

        Charts Courtesy of StockCharts.com

Short Term Chart (Daily 1yr) - Where to take a position

        Charts Courtesy of StockCharts.com


Today we provide technical analysis on Ausam Energy Corp, a Canadian listed energy stock. Lets start by taking a look at the long term weekly chart (the first one above). As you can see, its a fairly new listing, but the chart still provides a few good indicators which gives some interesting insight here. The current price level seems to be near support levels, but its not very strong here, but this level should be watched closely. As you can see, the cash flow has been negative for a couple of months, but the rate of such outflows has continued to decrease over time, and looks like it wants to turn up here, as the price continues to fall. The exact same situation is occurring with the MACD, which is diverging with respect to the price movement, and is a strong indicator that the down fall is getting weaker with time, and should reverse course soon. The short term chart shows the support level again, and the price has bounced off this level a few times, so any break down below this level is a strong sign to get out. The RSI and the MACD are both looking to bounce here, and divergence is again evident on this chart as well.

Overall, a reversal seems immanent here, but any breakdown should be watched as a sign to exit quickly. The reversal plays can yield impressive gains if you can catch one in the works, but this is still a speculative trade, with a strong bias towards an appreciation in share price than not.

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