Stockscom Report for Sunday Nov 19 2003

Ivanhoe Energy was hit by massive selling today and while there is good reason to sell based on the charts, one could reason as well that it was overdone. Stochastics are well oversold and price reached down to a point just above the 40-day moving average. The $4.00 level should provide major support based on both the many gaps around this point in October as well as the strong peak on October 15. Certainly this is a speculative issue however the company just announced on Tuesday (yesterday) that an arm of the Chinese state would be purchasing a 40% share of their Dagang project for $20 million and this injection of much needed working capital will be used to speed up the development of its oil production. Profits from this project will undoubtedly be used to finance its project located in the Zitong block of the Sichuan Basin and bring it to full implementation. This project's main asset is the little developed natural gas resource estimated to hold 5 trillion cubic feet.