CUL - Cullen Resources

camaybay · 11 July 2007

UPKA said:
I think FMG is only interested in CUL's tenament, not the company itself, plus, it only needs to pay up to 20% to CUL if they do find something underground, if there is nothing there, FMG loses nothing bt the money spent on exploration. To me its a good deal to FMG.

I think its a good deal for cullen, costs nothing to find out, good or nothing. If there is fe then FMG make money and does CUL, futher deals would follow

idaho · 11 July 2007

Regarding my last post I didn't day-trade as such but sometimes when i'm switching stocks if i feel the timing is right i buy before i sell, then the T3 situation allows a carry of more stock than account covers. Cullen gave me a surprise quick 20%, which is the sort of return i've seen vanish quickly many times after announcements, so I didn't have to sell a U stock to cover a switch to another iron ore stock. I took my 20% and am grateful for it.But i think i'll be back in soon by the look of it. Agree this one has more to come. But we'll see it coming.

idaho · 11 July 2007

Anyhow, my experience tells me "daytraders" can stretch out their play for three days, but suffer increaseing pressure late day 2 and day 3 they must pay, or sell, or both. So a lot of them that purchased on the run prior to announcement bailed today, especially when the reversal occured. But now Cullen will be carrieing a new batch of them who bought in on today's run. So they'll be playing for three days. It takes 3 down days in a row to shake them all off.

Fool · 12 July 2007

It is hard to tell an opening price because of the day traders, but to me it looks like it may have reached support and will start to retrace back towards 9c either today or tomorrow.

Are there any strong chartists willing to give their opinion?

juw177 · 12 July 2007

The depth does look a lot more balanced and I predict it will find some support today.

Fool, chart reading wont do much when there are big spikes in volume and SP like this. The long red candle closing on its low 2 days ago is an obvious sign of reversal. Yesterday closing at a lower low usually means the downtrend has not reversed yet.

Fool · 12 July 2007

juw177 said:
The depth does look a lot more balanced and I predict it will find some support today.

Fool, chart reading wont do much when there are big spikes in volume and SP like this. The long red candle closing on its low 2 days ago is an obvious sign of reversal. Yesterday closing at a lower low usually means the downtrend has not reversed yet.

True..

I should buy some books on charting and read more about it, it does seem useful at times, at least more then reading tea leaves

Ruprect · 12 July 2007

CUL seems to be finding some good support around the 7.8-8c mark. Unsure yet how this will play for the rest of the day, but on the face of it, day traders look out for the moment.

spottygoose · 12 July 2007

Article today from Minebox:

Cullen in second JV with Fortescue Metals Group

Cullen Resources has signed a Memorandum of Understanding with Fortescue Metals Group, allowing Fortescue to earn up to an 80 percent interest in the iron ore rights on Cullen’s E52/1667 (Snowy Mountain), located approximately 30km southeast of Paraburdoo in the Pilbara Region of Western Australia.

Fortescue will be exploring for iron ore within the Brockman Iron Formation, targeting similar style ore to that being mined at Channar. A particular objective will be to evaluate iron formations covered by recent alluvial sediments, which may not have been adequately tested by past exploration.

The terms of the MOU will see Fortescue commit to spend a minimum of $75,000, with the company able to earn a 51 percent interest in the iron ore rights by sole funding total expenditure of $600,000 within three years of the execution date of the MOU.

Fortescue may earn a further 29 percent interest in the iron ore rights if it sole funds an additional $1m within a further three years. Cullen’s residual interest (49 percent or 20 percent) will be free carried to Decision to Mine.

This is the second iron rights MOU Cullen has signed with Fortescue in the Pilbara region and, in addition, Cullen has a further four Joint Ventures in progress in the Ashburton -Pilbara region, for a variety of other commodities.

Cullen’s Managing Director, Chris Ringrose said that Cullen and Fortescue Metals Group hold adjoining tenements over the target formations in the E52/1667 area, and a joint venture with the company, which is developing a major iron ore resource base in the region, would allow for cost effective and efficient exploration.

Cullen retains the Other Mineral Rights for E52/1667 and is developing targets for gold mineralisation in particular.

Zero Sum · 12 July 2007

CUL needs to find support at 7.6 cents to remain bullish in the short term, if the pro's are serious about this stock they won't let it fall too far below this level.

YOUNG_TRADER · 12 July 2007

Zero Sum said:
CUL needs to find support at 7.6 cents to remain bullish in the short term, if the pro's are serious about this stock they won't let it fall too far below this level.

Hey Zero, just curious why yo pick 7.6c and not say 7.5c, the chart is all over the place, I know 6.4c is definate support, and 7c should also act as support, I would also think that 7.5c-8c will be churning as it took awhile to break through this level previously,

It should hold, but then there are so many traders I have no idea what it will do short term, long term fundamentals are there so I'm not worried

Zero Sum · 12 July 2007

YOUNG_TRADER said:
Hey Zero, just curious why yo pick 7.6c and not say 7.5c, the chart is all over the place, I know 6.4c is definate support, and 7c should also act as support, I would also think that 7.5c-8c will be churning as it took awhile to break through this level previously,

It should hold, but then there are so many traders I have no idea what it will do short term, long term fundamentals are there so I'm not worried

Hi YT, I use closing prices to help me identify support and resistance I pay no attention to what happened during the day, only where it closes. 7.6 cents is the price at which it closed on July 2nd then it consolidated for four days before breaking out again. It's the old principle of resistance becoming support once broken. Check out what happened when it broke out on June 27, it found support at 6.2 cents which was the old resistance back in April.

YOUNG_TRADER · 12 July 2007

Zero Sum said:
Hi YT, I use closing prices to help me identify support and resistance I pay no attention to what happened during the day, only where it closes. 7.6 cents is the price at which it closed on July 2nd then it consolidated for four days before breaking out again. It's the old principle of resistance becoming support once broken. Check out what happened when it broke out on June 27, it found support at 6.2 cents which was the old resistance back in April.

Hey Zero,

Looks like you were right, I really do have to beef up on m technical analysis/understanding, it makes it alot easier to see whats going on when so many traders are involved

Cheers

moses · 12 July 2007

this is for YT. I'm not sure that tonights SMA chart is giving much of an indication of the future for CUL, nor has it done so in the past. But here it is anyway.

Gurgler · 12 July 2007

Moses

Sorry to have to say this but some parting of the waters is needed here - the lower portion of the chart is very muddied. What can we make out of the black and blue lines?

Can you share any insight or interpretation of their movements?

camaybay · 12 July 2007

Gurgler said:
Moses

Sorry to have to say this but some parting of the waters is needed here - the lower portion of the chart is very muddied. What can we make out of the black and blue lines?

Can you share any insight or interpretation of their movements?

The trend of the three plots is to lower values, not an encouraging sign: and get a new monitor for clarity ( (are you clear Clarrie) roger Murdock) ref: chop:nuts:s

DYOR
only a guess

moses · 12 July 2007

Gurgler said:
Moses

Sorry to have to say this but some parting of the waters is needed here - the lower portion of the chart is very muddied. What can we make out of the black and blue lines?

Can you share any insight or interpretation of their movements?

Gurgler,

like I said, there ain't much indication here of anything, or as you said, the water's muddy. Not all stocks (few stocks in fact) show a reliable signal, and this is one of them. I only posted it up because YT asked me too, not because I felt it was useful.

However, to explain...

In essence, the blue line represents the pressure of bids and asks in the market depth queue. This information is a snapshot taken from the depth queue after the market has closed each day.

A ratio of 1 means that there is the same number of shares on the bid side as there is on the ask side.

A ratio of 2 means that there are twice as many shares on the bid side as there are on the ask side

A ratio of 0.5 means that there are twice as many shares on the ask side as there are on the bid side.

The black line is the most interesting line, because it tells us about the so called "smart money", which is an exaggeration as the real smart money stays waiting invisibly on the sidelines. But if we assume that people who buy bigger parcels are even slightly "smarter" than the speculators who buy smaller parcels, then it is their interest that the black line picks up.

The black line compares the buying pressure of the shares (the blue line) to the pressure of the individual buyers in the depth queue. So when the black line increases, it means that the average buyer is prepared to buy more shares than the average sellers is prepared to sell. When the black line goes down, it means the reverse; that the average seller wants to sell more shares than the average buyer is prepare to buy.

When the ratio is one, it means that the buyers and sellers are wanting to trade the same average size parcel.

In CUL's case, there is some correlation between the blue line and the SP, but no strong signals and precious little predictive information anywhere throughout the entire 4 month cycle.

Therefore I don't make anything of it, and wouldn't use it to predict anything about CUL's SP.

YOUNG_TRADER · 13 July 2007

Thanks all the same Moses,

Was trying to understand what CUL is doing, I'm in it for the long haul, but I'm fascinated by techincal analysis and all these other things and am trying to beef up here,

Anyway back to my core, fundamentals and they are strong here!

Gurgler · 13 July 2007

Thanks, Moses and camay-bay - and thanks again to YT - for sharing your knowledge, time and experience.

I'm also in for the medium to long haul so will wait out the probable dip today and perhaps even early next week. Short term traders may keep leaving if there is no immediate return of profits.

Pat · 13 July 2007

Bids are building on the buy side, I wonder where this will go short term. It looks as though the mid 7's is forming a short term base.

Sean K · 16 July 2007

kennas said:
LOL. Well, it took a couple of extra days, but the 9 ish cent target from that formation has been practically reached. In retrospect those candles with the long tails on lowering volume, marked with a green dot were pretty bullish after the spike. Not text book prep for a break, but pretty good. I'd expect more consolidation now, or soon, after such another large jump, pending significant news. Breaking 8 cents and finishing on the high was very bullish in the scheme of things.

Expected consolidation above what should be support at point of break from last formation (about 7.5c).

Low probability of a turn around now from this latest formation with a harami cross completed on Friday. Needs a good follow up day today for confirmation of short downtrend reversal.

Didn't really like the 2 candles after the break with the day trader driven big sell offs, but the follow up is encouraging. Consolidation on falling volume is a good sign reflecting accumulation by longer term players, IMO.

Harami Cross

Pattern: reversal
Reliability: low

Identification
A long red day is followed by a Doji which gaps opposite the trend and is completely engulfed by the real body of the first day.

The Psychology
In a downtrend or within a pullback of an uptrend, a long red day occurs. The next day’s gap up comes as a surprise to the shorts who thought they were sitting on a great position the previous day. The stock closes where it opens to signify a churn day with neither the bulls nor bears showing much force after the opening gap up. Reliability of the bullish Harami Cross is low, so a strong following day is needed for confirmation.

(holding)

CUL - Cullen Resources

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