Small Cap Highlights
Gran Tierra Energy Inc. (OTCBB: GTRE.OB)
For
Monday, January 28^th, 2008

Tony Golan
Chief Technical Analyst
StockProfit.com™

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This week I chose to highlight the chart of Gran Tierra Energy Inc. (OTCBB: GTRE). GTRE is starting a powerful new long-term up-trend, making higher highs and higher lows above a rising 200-day moving average (the red line on the chart above). Relative Strength Differential (RSD), our proprietary indicator for selecting stock in super-strong up-trends, is well above the 25% threshold line, indicating the up-trend in GTRE is far outperforming the down-trending S&P 500 and is therefore likely to continue outperforming the market.

Unlike most of the stocks we feature here on the Small-Cap Highlights page, GTRE has just gone through a correction of five trading days against the up-trend, made a higher low of 2.31 last Tuesday, and has been moving back up since.

Now that GTRE has gone through a correction, made a higher low, and started inching its way back up, we now have a point of support established between where the stock is now and the 200-day moving average. If the up-trend in GTRE is to be sustained, the stock should not go back down below 2.31, so a drop below 2.31 can be used as a stopping point, either with a real sell-stop (check to see if your broker accepts stops on Bulletin Board stocks), or by exiting at the market if the stock trades below the above low. If you're not already in GTRE, put it on your watchlist. Its recent strength in the face of a down market elsewhere is reason enough to keep an eye on it.

Tony Golan
Chief Technical Analyst

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