weekend charting feb 6/7, page-84

Here's some thoughts on EXT:

On a weekly chart looks to be in a descending channel therefore if I were trading it, I wouldnt go long at all until it broke the upside of this channel.

On a daily chart obviously same thing, descending channel, but its had a long uptrend prior to this so this looks to me like healthy consolidation. Its bounced off the 38% Fib twice, but is now flip flopping around it.

ACC/DIS is showing bullish divergence which hints a break out of the trend may be coming.

Stochastics is showing bullish divergence making a higher swing low and breaking a down trendline. Its also not letting price get as oversold as previous times in the descending channel. This is bullish.

RSI has recently just broken its downtrendline and is currently retesting it. This is bullish. Also note how when the trend changed from the ascending channel to the descending channel, horizontal suppor became resistance in RSI. RSI is still very much in the oversold area of its channel.

MACD is a bit all over the place, and is currently converging with the downtrend which is bearish.

Force Index has printed an abnormally low reading which could be indicative of a blow off bottom. You would usually expect this at the bottom of the channel but it could also be the 38% Fib level. The $7.50 has been support and resistance in the past so may be acting as support here too.

All things considered, I would buy it if it broke out of the top of the channel but until it did so, its in a downtrend as far as Im concerned and should only be shorted at the top of the channel if possible. A break out of the downtrend line would most likely have confirmation of the indicators seeing as most of them are bullish right now.

Note how not all of my channels are perfect. They dont have to be IMO as they are more trying to catch the general trends and angles than to specify exact support and resistance. Rather they are support and resistance areas but with definate stop loss points and sell points.