Free Stock Tips

Hi Everybody,

The price of oil made a new recent high last Friday hitting $104. While this is not exciting news for those of us that have to fill our gas tank each week, it does mean that oil and gas stocks will be heating up again as investors look for ways to capitalize on rising oil prices.

Our alert for Tuesday has some positive technical reasons to take a close look at it in addition to the rising price of oil.

Let’s get to it.

Our alert for Tuesday is Legend Oil & Gas, Inc., LOGL, and the stock closed Friday at 83 cents.

Here’s some information to get you started:

LOGL is an oil and gas exploration, development and production company with leases in Canada , southeastern Kansas and northern North Dakota.

LOGL recently announced positive news regarding it’s Kansas drilling program stating that 3 wells drilled in December have been completed and put into production.

In addition, LOGL has decided to drill up to 10 more wells in Kansas this spring.

This spring could be an exciting time for LOGL. Not only will they need to disclose actual results of the last drilling program (Oil and gas companies are allowed to keep results private for a limited time so they have an advantage over their competition as far as locking up new leases in the area.) but there will be plenty of news regarding the new drilling program. As we know the more news the better because news helps draw attention to a stock.

When it comes to exploration companies like LOGL, traders tend to attempt anticipating major news. With the 10 wells set for the spring, it would seem the move reflecting these potential results will come soon.
So, quick story recap:

-Oil is trading higher which pulls oil and gas stocks up with it.
-LOGL just completed 3 wells and is about to drill 10 more.
-Traders often bid up oil exploration companies stocks in anticipation of positive results.

What is most exciting about LOGL, however, is its chart. Let’s take a look at some of the indicators that are pointing in the right direction.

1) LOGL has had 5 consecutive down days.

As a rule 3-5 bars in a row in any direction indicates a reverse in price direction is close by. (Remember this!)

If you look at the chart you will see the last run up came after 4 consecutive red bars and the latest decline came after 5 green bars in a row.

2) The 50% retracement area of the last move held on Friday. For those of you that follow Fibonacci you know that the 50% area is very important and a test and bounce of this area is a positive.

3) The last couple LOGL daily bars have nice bottoming tails showing us buyers are around at these levels. This is a bullish sign.

Between the story and the chart there are good reasons to make sure LOGL is on your watchlist for Tuesday.

As always, do your own research, don’t chase gaps, use limit orders
to enter positions, always use stop loss orders to protect your
position, and take profits when you are in a position to do so.

Get ready to book your profits with LOGL.

Good Trading