Petrolia Drilling 21.02.2008

Petrolia drilling has been in a long downward movement since mid-June last year when it was as high as 3,70 NOK. It reached a so far low mid-January at 1.61 NOK but has since risen and today it closed at 2.05 NOK. Several support and resistance levels has been developed from the last price movements, and todays close ended exactly at the resistance level at 2.05 NOK after being as high as 2.07 NOK during the day. The trend channels for both RSI and the price is negative but there was a breakout from the negative RSI trend channel last week. This must be regarded as a positive signal indicating a possible breakout from the 2.05 resistance level. RSI has ended over 50 which must also be regarded as positive. The stock could still fall a bit the days to come as RSI leaves room for this. A potential fall would be down to about 1.94 NOK where we find the support level. On the other hand if we get a breakout from the resistance level the stock could rise to about 2.15 NOK at first. If the stock falls back down to 1.94 NOK and the support level holds, buy at the 1.94 level if possible. This could be an excellent entry point.