re: Above $4.60Incredible charts>>continuation gap
http://www.incrediblecharts.com/technical/gaps.htm#Breakaway%20Gaps#Breakaway%20Gaps --------------------------------------------------------------------- Gaps --------------------------------------------------------------------- http://finance.news.com.au/common/story_page/0,4057,4400145^462,00.html --------------------------------------------------------------------- The dollar --------------------------------------------------------------------- The dollar strengthened to 55.67 US cents. (more) --------------------------------------------------------------------- Placer Dome bids $ 2 billion for AurionGold --------------------------------------------------------------------- The Vancouver-based gold miner is offering 17.5 shares for every 100 AurionGold, only recently formed by the merger of Delta Gold and Goldfields. (more) --------------------------------------------------------------------- AOR experienced a large breakaway gap accompanied by strong volume. It is interesting to note the increased volume over the week prior to the announcement. --------------------------------------------------------------------- Gaps occur when the lowest price traded is above the high of the previous day or, conversely, when the highest price traded is below the previous day’s low. --------------------------------------------------------------------- Placer bids $2b for minerBy Sean Smith28may02 --------------------------------------------------------------------- PLACER Dome is poised to pick off another Australian gold miner with a $2 billion offer for AurionGold. --------------------------------------------------------------------- The takeover would leave Newcrest Mining as the single Australian gold producer of any note and deliver yet more of the Australian industry into foreign hands. --------------------------------------------------------------------- Under yesterday's tilt, Placer Dome has offered 17.5 of its shares for every 100 shares in AurionGold, itself the product of an agreed merger between Goldfields and Delta Gold only six months ago. --------------------------------------------------------------------- South Africa's Harmony Gold has given the bidder a head start by agreeing to sell its 9.8 per cent stake into the offer, describing Placer Dome as "a logical owner" of AurionGold. --------------------------------------------------------------------- AurionGold and its advisers were last night examining the takeover documents and urged shareholders to take no action until further advice. --------------------------------------------------------------------- Based on Placer Dome's close of $US14.27 in New York on Friday, the bid values the target at $4.51 a share – a 29 per cent premium to AurionGold's average price over the past month. --------------------------------------------------------------------- The stock ran up on yesterday's announcement to meet the offer price, hitting $4.60 before retreating to close $1.05 up at $4.53. --------------------------------------------------------------------- The takeover would create the world's fifth-biggest gold miner by increasing Placer Dome's production by one million ounces to nearly 4 million ounces. --------------------------------------------------------------------- "This deal makes good sense for everyone," Placer Dome chief executive Jay Taylor said from Sydney. "This is not only a logical move that will create more opportunity and greater long-term value, it is another step in the consolidation of the global gold industry." --------------------------------------------------------------------- AurionGold is anchored by six mines in Western Australia, Tasmania and Papua New Guinea, including two – Granny Smith (WA) and Porgera (PNG)– jointly owned with Placer Dome. --------------------------------------------------------------------- However, the Vancouver-based company's bid was also heavily influenced by its realisation of the potential of AurionGold's commanding exploration position around Kalgoorlie. The prospect of a counter bidder cannot be discounted, but Placer Dome's existing partnerships with AurionGold means it stands to gain more from the acquisition than any rivals. --------------------------------------------------------------------- Mr Taylor said the group, which maintained a head office in Brisbane, expected to realise $US25 million ($A44.9 million) in synergies by eliminating overlapping functions in Australia and combining the two exploration divisions. --------------------------------------------------------------------- "As things go, once we get in, we usually find other opportunties," Mr Taylor said. The usual suspects, including AngloGold, fellow South African miner Gold Fields, US giant Newmont and Toronto-based Barrick, were bandied around yesterday as talk turned to potential rival bidders. --------------------------------------------------------------------- However, AngloGold still bears the scars of the bidding war for Normandy, Gold Fields only recently passed up an option to buy the Harmony's AurionGold stake, and Barrick and Newmont are still bedding down major acquisitions. --------------------------------------------------------------------- Placer Dome has been looking at further investment in Australia for some time, but Mr Taylor rejected suggestions the group risked being labelled a consolidation laggard. --------------------------------------------------------------------- "You have to find what works for you," he said. "And this (AurionGold) is spot on. It's totally consistent with our global strategy." --------------------------------------------------------------------- The bid coincides with the highest gold prices in two years and marks another stage in an industry consolidation sparked by major North American and South Africa miners seeking to cut expenses through increased production of lower-cost gold. --------------------------------------------------------------------- AurionGold's predecessor as Australia's No.1 gold producer, Normandy, fell a few months ago, taken out by a $4 billion bid by Newmont. --------------------------------------------------------------------- Courier-Mail --------------------------------------------------------------------- Gap - Up/Down --------------------------------------------------------------------- Gaps form when opening price movements create a blank spot on the chart. Gaps are especially significant when accompanied by an increase in volume. --------------------------------------------------------------------- An up gap forms when a security opens above the previous period's high, remains above the previous high for the entire period and closes above it. Up gaps can form on daily, weekly or monthly charts and are generally considered bullish. --------------------------------------------------------------------- A down gap forms when a security opens below the previous period's low, remains below the previous low for the entire period and closes below it. Down gaps can form on daily, weekly or monthly charts and are generally considered bearish. --------------------------------------------------------------------- Gap - Continuation --------------------------------------------------------------------- Click on writing below
Stockcharts---explanation of gaps different types--definitions/descriptions. --------------------------------------------------------------------- A continuation gap forms in the middle of a move and in the same direction as the current move. These gaps signal a continuation of the preceding trend and can mark good entry points. --------------------------------------------------------------------- After a short or intermediate advance, a continuation up gap is usually considered bullish and signals a renewal of the uptrend. After a short or intermediate decline, a continuation down gap is usually considered bearish and signals a renewal of the downtrend. --------------------------------------------------------------------- http://www.smh.com.au/articles/2002/05/27/1022243313577.html --------------------------------------------------------------------- Dollar keeps chugging higherBy John GarnautMay 28 2002 --------------------------------------------------------------------- The dollar built on its stellar performance yesterday, edging 18 points higher to close at US55.67c. --------------------------------------------------------------------- And the financial market was tuning its antennae for signals that the Reserve Bank of Australia will raise rates again at its board meeting next week - which could push the dollar to new 18-month highs. --------------------------------------------------------------------- Economists have forecast continuing strong growth and further interest rate hikes for the second half of this year, largely on expectations that exports and business investment will improve and offset a decline in construction activity. --------------------------------------------------------------------- Wednesday's trade figures and Thursday's capital expenditure data will test both these propositions. --------------------------------------------------------------------- RBA governor Ian Macfarlane is due to address the Senate on Friday, which will provide a crucial insight into the central bank's inclinations ahead of next week's meeting. --------------------------------------------------------------------- "This week's data will culminate with the governor on Friday, that's really got the bond market focused", said Westpac's Jonathon Hale. --------------------------------------------------------------------- "The economy is absolutely on fire and therefore the RBA needs to quell the fire before inflation takes over ... Certainly his first hike has done nothing to dampen the housing market." --------------------------------------------------------------------- Mr Hale said the bond market had priced in a 65 to 75 per cent probability that the RBA will raise rates next week. He said there was "a good chance that there will be three hikes in three months." --------------------------------------------------------------------- Mr Hale concluded that bonds were "extremely expensive" and that yields on long-term bonds would pick up by about a quarter of a per cent over the next two weeks. --------------------------------------------------------------------- Some analysts expect to see another test of the US56c barrier today, followed by further upward pressure over the remainder of the week. Whilst bullish domestic news may contribute to the dollar's strength, the real driver is expected to be continuing US dollar weakness. --------------------------------------------------------------------- In trade-weighted terms, the dollar has moved 6 per cent higher over the first six months of this year. In US dollar terms, it has moved about 9 per cent, and almost 4 per cent in May alone. --------------------------------------------------------------------- Deutsche Bank's Richard Yetsenga said: "It certainly seems to be the end of year-to-year US dollar appreciation. A range of currencies have moved through pretty important technical levels and you'd be betting on a period of secular US dollar weakness." --------------------------------------------------------------------- Additional Trading technical links --------------------------------------------------------------------- http://www.equis.com/free/taaz/patterns.html http://www.thericepaper.com/Training/Contents.html http://www.daytradingstocks.com/technicalanalysis.html ---------------------------------------------------------------------
AOR Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
