I have never heard of Falcon Energy (by virtue of its illiquidity) until it caught my attention on 15 June 2009, the day when its daily volume shoot up to 64,984,000 shares. But out of the 64 millions shares traded, 60 millions was actually married deal done at 43.5 cents, a good deal when the stock was trading above 50 cents, huh.

Anyway, it does not really matter. Ever since the 64 million daily volume, Falcon Energy has attracted some attention of the trading community as can be seen in the gradual increase in its daily volume (as compared to low or no activity before). Something positive seems to be brewing. But as a technical trader, I do not guess, I enter based on chart formation, which in Falcon Energy’s case is positive.

The breakout of resistance at 67.5c coupled with an increase in volume on 6 July 2009 more or less confirms Falcon Energy’s uptrend. The next resistance is at 72.5c. Short term traders might treat the previous resistance 67.5c as the immediate support. However, the next support at 59.5c is a more realistic support in my opinion.