GeoGlobal Resources (GGR)

Company

"GeoGlobal Resources Inc., headquartered in Calgary, Alberta, Canada, is a US publicly traded oil and gas company, which through its subsidiaries is engaged primarily in the pursuit of petroleum and natural gas through exploration and development in India. Since inception, the Company’s efforts have been devoted to the pursuit of Production Sharing Contracts with the Government of India. Currently, the Company is focused on the development of high potential exploration targets in the Krishna Godavari basin, the Cambay basin, and the Deccan Syneclise basin." (company website)

Buy

2-Nov-06. I've been keeping a watch on GGR ever since I got stopped out for a nice profit. This morning GGR traded below $7, which is about where I had guessed it might pull back to. But, when I looked at the chart GGR was trading in the low $6.90s, but I was reluctant to hit the "Buy" button — What if it kept falling? So, I waited until it was back up near yesterday's close before jumping in. As a result of my hesitation, the entire order did not execute, and at the moment, I have been able to get only 300 of the 500 shares I was trying to buy.

• Price momentum (PPO) — fell sharply this week during pullback
• Trend (ADX) — weakened sharply this week during pullback
• Money flow (CMF) — very strong inflow
• Relative strength (RSI) — fallen back to neutral now
• Volume — more or less stable

The company announced this week that it had finished drilling another new well and plans to start testing it. I guess I like to live dangerously.

Sell

14-Nov-06. When I saw news that GGR had reported a loss this quarter, compared to a profit a year ago, I hit the sell button. GeoGlobal is one of those companies that does not announce when they will report, they just file the report. True enough, the stock quickly recovered after an initial shock, but I decided to be prudent. The trend (ADX) is weakening, volume is weak, and stochastic RSI is pointed down. Energy stocks are terribly volatile, I find, and for some reason I've not been as successful trading stocks on the AmEx. All that translates into "take the profit and be happy with it."