Your 'prediction' that it is drifting to the $5.50 I have to disagree.
Daily support level short term is $6.74. If it breaks this level, it may slide lower. Friday was a hammer and it is below the 20 SMA so it is still bearish. My RSI modified is showing overbought and depends on the next few days may show price divergence.
Again on the weekly chart, hammer on the $7.00 support so there strong support here because it has not broken this support since the trend down from Sep 09 high. I am looking at a $6.15 area for the 50% Fib level.
Technically, I am comfortable with the performance. Fundamentally not so comfortable with the sector because of the low U prices. Every miner/explorer in this sector is in the same boat. The fundamentals have not changed and we are waiting for the 'upgrade' IMO. These are measurable metrics that can be used in valuation.
Whether the TO premium is built into the price is only an opinion. How do you calculate this premium? In fact this is the time to buy IMO because it shows how robust the performance has been in the events leading to the bearish sentiment, ie. large holders selling, EU problems, etc.
It always come back to the question of why they are still having 17 RC & diamond drills working flat out when they have got enough resource for a starter mine to generate cash for future resource upgrade.
EXT Price at posting:
$6.86 Sentiment: LT Buy Disclosure: Held
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