Explorers Looking To Consolidate Gains

Sun Herald

Sunday October 22, 2006

REGINA MEANI

Momentum is surging: A minerals explorer with a nickel focus, Heron completed a large base in March 2005, indicating price targets to 60 cents, $1.50 and $2. Momentum surges in April and August 2005 made the price overreach its first target, moving to 83 cents and 95 cents to produce a consolidation phase. A breakaway through 75 cents would trigger the next stage to retest the peak at 95 cents-$1.05 before heading higher. The risk would be a breakdown through 58 cents.

Rare opportunity: Alkane concentrates its exploration on rare earth metals and has been consolidating to approach a significant barrier around 25 cents. A breakthrough would signal a rise towards 29 cents and potentially 40-45 cents. The risk would be more volatility in the phase on a drop below 20 cents.

Key strategy: A basing phase has been developing from the late 1980s for this explorer and producer of gold and mineral sands. The price has oscillated between 13 and 21 cents for more than 12 months in the final stages of the base. A rise through 21 cents would signal a test of a key barrier around 35 cents. Once clear, significant upward momentum would produce an initial target to 50 cents and then through $1. The risk would be a breakdown through 13 cents.

© 2006 Sun Herald

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