chart, page-34

Hi vulture,
I seem to play contrarian to you lately, so here goes another one.

Since we failed to touch on 2.3 on Friday in a very emotional selloff on the ASX, I do believe that we actually might have bottomed out at 2.4 cents.


Reasons for that assumption are several:

1,
The buy order at open for 4 mil showed clearly where things are headed in the short term.
Nobody risks a 100k in such a global environment when not convinced of the short term outcome.
If a price appreciation would be a longer time off, such buys would simply not occur and accumulators would let the current fear scenario run its course.
I do believe that large buys are thrown into the otherwise thin panic selling in light of short term gain expectation.


2,
The retreat of the shareprice was not only matched with strong buying at every level down, but also manipulated lower with strategically placed sell orders when it would hurt sentiment most.

3,
Management states that our update is in the making for early next week.



I also expect some macro relief for the next 2 weeks after the G8 meeting which, at least on the surface, will galvanize the EU leaders for the short term to present some positive signals towards fiscal policies containing the crisis.


I therefore expect a relief rally next week on the major indexes, mixed in with some nervous volatility before panic might visit us again before Greek elections.



Charts are hard to read in times of excessive market panic as nearly all charts I watch currently break through major resistance levels, triggering sell signals all over.
At this point in time, a bear market is not yet confirmed and the correction within the bull market calls for a snap back.

Depending on the shape of recovery one might determine if we are in for a far more brutal correction in mid to late June.



I expect the anticipation of announcements to overtake the fear factor for ESI and a strong performance of our share next week, particularly if we receive favourable news.