Petre Diamonds - Diamond in the rough??

I should add that all comments are welcome obviously.

I'd love to know what others think:

a) about the company or its technical's
and
b) about the chart and thoughts themselves

If im going wrong anywhere, i'd like to know now at a younger age to steer right back on to the right path

EDIT THE FOLLOWING SENTENCE:

They produced 220 Mct FY end June 2012 and sold 208 Mct with a revenue of $316.9 (avg sale of $152/ct and a cost of $101.18/ct)
These results were during a period of a poor and volatile market for Diamonds

TO

They produced 2.2 Mct FY end June 2012 and sold 2.08 Mct with a revenue of $316.9 (avg sale of $152/ct and a cost of $101.18/ct)
These results were during a period of a poor and volatile market for Diamonds

AAAAAAAAAAARRRRGHGGGHHHH - never got the editing function put on lol.

Hopefully the charts are self explanatory - but basically I feel that PDL is coming to a significant Support area, where the indicators are also lining up.

I think there are multiple trades that can be taken here, from scalping and short term trades to mid and longer term trades.

My preference would be to buy @ 97 with stops below 84.

Levels to consider on the way up are or could be, but not limited to, 109, 119, 130, 140, 158 with the major resistance @ 188 (the levels seem to be in increments of 10.

I think the 97 area provides very good risk-reward on most future trades.

Fundamentally I feel the company is on very safe grounding. They are an operationally profitable Diamond exploring, producing and selling company (with one of the largest reserves in the world - and in a world where diamond strikes of any significance are few and far between, and supply not as strong as it was, it could play a major role for the company in the future)

They produced 220 Mct FY end June 2012 and sold 208 Mct with a revenue of $316.9 (avg sale of $152/ct and a cost of $101.18/ct)
These results were during a period of a poor and volatile market for Diamonds

They plan on increasing their production to 2.8 Mct by FY 2013, and 5m by FY 2019

As an upside they are also exploring and expecting news for the Botswana prospect.
They have labelled it as "an exceptional basis for diamond exploration in that it ranks highly with regards to prospectivity, has a low risk profile and an attractive fiscal regime. The Company has diamond prospecting licences in country covering approximately 12,725km2, all of which is "on craton".

They are expecting news on the analysis of 1550m of Large Diameter Drilling bulk samples (totalling 818 tonnes of kimberlite) in Q2 2013

They are also awaiting debt financing confirmation which will fund them for the full expansion strategy to enable them to meet planned production targets. They expect this to go through in Q2 2013, pending due diligence and legal documentation.

Some of the risks I can determine fundamentally are:

- although they have a healthy operating profit - with a margin of circa 30-35%, they have a group loss of $2.1m for FY 2012 - this can be attributed to an unrealised loss on foreign exchange of approx $40m

obviously this is unrealized and is only for documenting purposes - but it is still a significant risk to consider.

- the funding for the expansion, although expected, is not signed and sealed yet and remains a risk

- Diamond market. Very volatile year - uncertain short term future - despite analysts bullishness for mid-long term.