PennyStockChaser.com Alert: PPTO Technical outlook on Oil points to move past $90

PRLog (Press Release) - Jun 07, 2009 -
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Today’s news alerts include: PPTO

www.pennystockchaser.com - The technical outlook on oil is pointing to a move to $90 per barrel - PPTO will jump much higher when this happens !!!

PPTO (http://www.precisionpetroleumcorp.com/) is our favourite oil play in this rising oil environment.

The buying pressure has been very consistent on PPTO. When stock is accumulated in this manner there is a hugely a reason. The company should be getting more acquisition news. Once we get the right news, the ride to $3.00 will start.
http://www.stockscores.com/quickreport.asp?ticker=ppto

We have a base on the stock between $1.00 and $1.10. The stock seems to be tracking the price of oil.

Oils technical outlook still calls for a move to $90.

Crude oil rose further to as high as 70.32 last week but retreats mildly after touching 55 weeks and 55 months EMAs. While upside momentum is seen diminishing mildly, there is no indication of topping yet. Further rally is still in favour and sustained trading above the mentioned EMAs will path the way to 38.2% retracement of 147.27 to 33.2 at 76.77 next. On the downside, though, break of inner channel support (now at 64.53) will argue that rise from 43.83 has completed and focus will turn to 59.61 support for confirmation.

In the bigger picture, the question remains on whether the rise from 33.2 represent reversal in trend in crude oil, or it's merely a correction in the larger down trend. But in any case, rise from 33.2 should still be in force as long as 56.07 support holds. Sustained trading above mentioned 55 weeks and 55 months EMA will pave the way to stronger rally to 38.2% retracement of 147.27 to 33.2 at 76.77 next. On the downside, below 56.07 will be the first signal that rebound from 33.2 has completed and will turn focus to trend line support (now at 53.59) for confirmation.

In the long term picture, note that fall from 147.27 is treated as a correction, or part of the correction/consolidation to the five wave sequence from 98 low of 10.65. Downside target of 17.12/37.0 support zone is already met and the correction might have completed already. Sustained trading above mentioned 55 weeks and 55 months EMA will add some credence to this case and should target next key level of 90, (50% retracement of 147.27 to 33.2 at 90.23). This will remain the preferred case as long as crude oil continues to stay above the trend line support form 33.2 low.

If we get a move to $90 per barrel on oil, companies like PPTO will be on every investors shopping list.

PPTO is building a 1000 barrels per day producer and that kind of revenue will make them a tempting target for a larger company. Strong revenue growth in the oil patch can usually command a premium ads a takeover target.

We think the bull market in oil could even surpass $100. PPTO is in a great position to benefit from this increase in the oil price.

PPTO is to cheap @ $1.03 if investors look forward and consider the effect of a rising stock price and the possibility of a takeover.

Please remember to do your due diligence on PPTO.

For more information on PPTO, please join us @ www.pennystockchaser.com.

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Forward-Looking Statement: This press release includes "forward-looking statements" within the meaning of the federal securities laws, commonly identified by such terms as "believes," "looking ahead," "anticipates," "estimates" and other terms with similar meaning. Although the Company believes that the assumptions upon which its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct. Important factors that could cause actual results to differ materially from the Company's projections and expectations are disclosed in the Company's filings with the Securities and Exchange Commission. All forward-looking statements in this press release are expressly qualified by such cautionary statements and by reference to the underlying assumptions.

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