Trading Day Thursday, 28th April 2011

S&P/ASX200 Index

Summary
Yesterday’s inflation figures weighed heavily on the market as it dropped almost 1%, but found support at the
pre-Easter opening level (4870). Overnight, news from The Bernank that everything is fine, but its not, so we
will continue to stimulate, rallied all risk markets (except silver), and the Aussie market has opened up on
digestion of this news.
The short term trend remains weak but positive on momentum, as it continues to reverts to the medium term
trend (note red line on graph below). It’s pretty much green across the board going into lunch at 4900 points.

Chart 1. Daily candlestick with 15 day moving average (pink line) over 3 months.

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The Prince is a full The content of this document should not be taken as investment advice or construed as a
time trader with recommendation to buy or sell any security or financial instrument, or to participate in any
extensive experience particular trading or investment strategy. The views expressed are the opinion of the author
in equities and only. The author may have a position in any of the securities mentioned. Any action that you
derivatives trading take as a result of information or analysis is ultimately your responsibility. Consult someone
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management.

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 Thursday, 28th April 2011

Daily Stock Scan

How to read What does “position” mean?

These watchlists are the results of end-of-week Bullish = looking to add/start long position
scans, using a medium term trading system to Bearish = looking to add/start short position
ascertain the strength, direction and momentum of Hold = maintained current position
trends.
Avoid = wait for direction/catalyst
This intra-day report will pinpoint possible entries
Go to the glossary at the end of the report for more
and exits based on a short term trading system.
information.

ASX100 Select

Name Code Pattern/Stance Position Notes

AGL Energy AGK Medium term downtrend AVOID Up 0.5% on possible breakout - one to
watch

AMP Limited AMP Saucer bottom, trend BULLISH Down 1% hovering near support at $5.50
developing

ANZ Banking ANZ Sideways bullish AVOID Up 0.9%, still meeting short term resistance

BHP-Billiton BHP Medium term uptrend, HOLD Up 0.5%, finding support

meeting resistance

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ASX100 Select (continued)

Name Code Pattern/Stance Position Notes

Coca-Cola Amatil CCL Medium term uptrend BULLISH Reversed yesterdays loss - still looks good

Cochlear COH Medium term uptrend BULLISH Still hurting from AUD - change to sideways

Commonwealth Bank CBA Sideways bullish, meeting BULLISH Breakout past resistance - up over 1.3%
resistance

CSR CSR Medium term downtrend BEARISH Spinning candle y’day, down 1% today

David Jones DJS Sideways bullish, trend AVOID “about to hit resistance/sell zone around
developing $4.85-4.90” - yesterdays reversal has
reverted DJS to sideways again

Fairfax Media FXJ Medium term downtrend, AVOID Up over 1.5%, coming up to resistance at
short term uptrend $1.38

Harvey Norman HVN Medium term downtrend BEARISH Failed falling wedge pattern, but floating
just below $2.80. Insto’s will continue to
buy this so be wary.

National Aust. Bank NAB Sideways bullish, trend BULLISH “Good time to take profits” - or not, up
developing another 0.9%

Newcrest Mining NCM Medium term uptrend BULLISH Up 0.5%, hitting resistance

Onesteel Ltd OST Medium term downtrend BEARISH Monkeys keep picking away, but down 1%

Origin Energy ORG Sideways bullish AVOID “if it can get past $17.20, upgrade to
BULLISH” = fail, back to sideways

QBE Insurance QBE Saucer bottom, trend BULLISH Up 0.8% and continues breakout slightly
developing overbought, BTFD?

Sonic Healthcare SHL Sideways bullish, uptrend BULLISH Up again, medium term trend now
developing underway, expect a pullback

Suncorp Group SUN Medium term downtrend, AVOID/ More shenanigans - up 0.5% but super
hitting support COVER weak.

Tabcorp TAH Medium term uptrend, short BULLISH “but this is looking overbought, expect a
term breakout retracement” - yep - tighten stops

Telstra TLS Sideways bearish AVOID ”building a possible breakout pattern here” -
up over 1% and firming. I like this.

Wesfarmers WES Sideways bullish, trend BULLISH Up again to reverse yesterday, so net no
developing gain still hitting resistance/sell zone at $34

Westpac Bank WBC Saucer bottom, trend BULLISH Up slightly, but momentum is flat again.
developing Tighten stops and wait.

Woodside WPL Sideways bullish, trend HOLD Building for a possible breakout - one to
stalling watch for entry signals

WorleyParsons WOR Medium term uptrend BULLISH Up almost 2% as the trend continues -
“stay the course” indeed

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 Thursday, 28th April 2011

ASX Small Ords

Name Code Pattern/Stance Position Notes

Aditya Birla ABY Medium term uptrend, HOLD Up over 3% and heading to prior resistance level.
pausing Likely to pause again.

Acrux ACR Medium term uptrend BULLISH Up slightly - tighten stop to $3.26

Billabong BBG Medium term downtrend, BEARISH Down again - slightly oversold, so tighten stop to
accelerating $7.10

Bandanna Energy BND Medium term uptrend, BULLISH Up 2% but lots of selling pushing the intraday price
accelerating down. Tighten stop to $2.04

Beach Energy BPT Medium term uptrend, BULLISH “reverting to trend” - no still pausing, wait for near
pausing the close to act

Cabcharge CAB Sideways bearish AVOID Trying to breakout past $5.60 - watch near the
close to act on a breakout.

Data#3 Ltd DTL Medium term uptrend, HOLD Still floating here at $14.60 - IT concerns for state
meeting resistance governments cutbacks?

Envestra ENV Medium term uptrend, BULLISH “could be overbought” the pullback was good,
accelerating price now up 1% - stay the course

Energy Resources ERA Medium term downtrend, COVER Another bottom? Another drop thereafter? Tighten
finding support stops to $6.40 or so.

Flexigroup FXL Medium term uptrend BULLISH Still flat - tighten stop to $2.14

Graincorp GNC Medium term uptrend BULLISH Up 0.6% - nice little trend keeps going

Horizon Oil HZN Sideways bullish, BULLISH “but weak” - yep going nowhere. Could be
breakout consolidation - tighten to 40c

Kingsgate Consol. KCN Medium term downtrend, AVOID Looks like a bottom may be in - watch for close
finding support over $8 and the gold price

Lynas Corp LYC Medium term uptrend, HOLD Down almost 10% yesterday, up on the open as it
meeting resistance respects medium term trend - BTFD

Medusa Mining MML Medium term uptrend, BULLISH Up 3%, breakout not confirmed, but still bullish
accelerating and moving in a channel

Monadelphous MND Medium term uptrend AVOID Down 1% - this Good Company is still a sideways
complete, sideways proposition

NRW Holdings NWH Medium term uptrend BULLISH Back after trading halt, but no change.

Oceanagold OGC Sideways bearish BEARISH Up slightly at midday, but there is no support.

Pharmaxis PXS Sideways bullish, volatile AVOID Looks very toppy - resistance at $3.05 - now 7
- meeting resistance days in a row. Time stop = get out

Regis Resources RRL Medium term uptrend, BULLISH Up 2% still within trend band. Maintain stop at
accelerating $2.36

Seek Ltd SEK Sideways bearish, AVOID “but coming into sell zone at $7.10 to $7.20” - yep
possible breakout strong intra-day resistance here

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ASX Small Ords (continued)

Name Code Pattern/Stance Position Notes

Seek Ltd SEK Sideways bearish, AVOID “but coming into sell zone at $7.10 to $7.20” -
possible breakout yep strong intra-day resistance here

Sigma Pharma. SIP Sideways bullish, BULLISH “time stop might apply soon” - out of this one
possible breakout for now.

Virgin Blue VBA Medium term downtrend, COVER “bullish divergence on indicators indicate a
finding support bottom soon” - still no time to buy. Ever.

Whitehaven Coal WHC Sideways bearish AVOID Closed almost 1% lower yesterday, gapped
down 4% today. Downgrade is obvious.

Wotif.com WTF Medium term uptrend BULLISH Up slightly, but getting into sell zone again at
$5.80. Another Good Company

Calendar

Date Event/Company Notes

Thursday, 28th April BPT, ILU, OSH, WHC Production reports

Friday, 29th April AWE, HZN, MMX, TAP Production reports

Friday, 29th April Macquarie (MQG) Earnings Release

Tuesday, 10th May Commonwealth Bank (CBA) March QTR Trading update

For more up to date information on upcoming events go here.

Glossary of Terms

Term Description

Bullish Biased towards an uptrend in the stock, either trend continuing or a new trend to develop

Bearish Biased towards a downtrend in a stock, or lack of potential for growth, or to add to a short

Long/Short The buying/selling of a security (or derivative thereof) with expectation it will rise/fall in value

Sideways Usually with a bullish/bearish bias, the stock is consolidating and not moving in a medium
term basis, but may move in between a channel of prices through short term trends.

Hold To maintain the position and examine risk management (e.g tighten stops)

Avoid To avoid a position entirely, but not to stop watching for future potential

Resistance An upper price level that a stock or index can trade to, but not exceed.

Support A lower price level that a stock or index can trade down to, but not drop below.

Momentum The rate of change or acceleration of prices, either upwards or downwards.

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