Ann: Presentation - Recommended Merger of Beach and Drillsearch, page-82

Pnewby,

I sold down more of my shares today (so about 32% of my total holding between today and yesterday).

I'm no chart guy but I use the Dec2015 WTI futures as my barometer of trend and it doesn't look convincing at the moment.

Last night the chart that I follow fell below the last support line set after the September bounce in the oil price (blue line). The price recovered from last nights low but is still hovering around that support level.

I'm not a chartist but it looks to me that it has broken support rather then tested it. May be @nordsemic can tell us as he follows the pure chart and knows this stuff.

Also compare the slopes of the price slide from July to Sept and look at the slope now (green lines).


I'm still strong and long oil and DLS over the next 14 months but in my case selling is like taking a little hedge against any further price slide. If oil makes a double bottom on my chart I don't think DLS will fall much below 60 to 65cents and I'll buy back in. If oil has a good reversal in the next few days/week I'll buy my holdings back even if I have to pay a few cents more.

I just think we are exactly at a crucial point for oil tonight so I like to cover a bit for any further falls.

I'm still totally in love with this oil trade in the long term and hope to increase my holdings in DLS if we are fortunate enough to see another good dip.

Eshmun