a good place to go long?....charts

I have been having a look at EXT and this is due to break one way or the other.

Here is a 9 month daily chart.





- The up trending daily support line has been in play since April.
The share price has tested and failed to close below this support line on at least 4 seperate occasions.

- Also conversely the down trending daily resistance line has been in play since early September where EXT hit an all time high of $11.47.

Both these support and resistance lines are converging and a break is therefore imminent....which way will it break?


Heres the weekly chart:



- Shows that Ext is finding support at the 61.8% Fib retracement level of the strong run that it had from Early July through to early September. This Retracement is perfectly normal for up trending stocks.

- There should also be some solid support at the weekly support line, as previous weekly resistance now becomes support.
Its important for Ext to hold above this support on the weekly.


Heres a 1 year monthly chart:



- I like looking at monthly charts as they remove the noise and can help put things into perspective.

- As you can see EXT registered 9 consecutive months of share price increases, even though it put in its all time high in september it has still not even retraced 1 month of those gains.


Heres a couple of momentum indicators:




- Daily stochastics are showing an oversold situation - Watch for the cross up.




Weekly stochastics are also showing an oversold situation with EXT only being this Oversold on a weekly momentum basis 1 other time in a 2 year period.


MACD is looking to cross up:




Momentum indicators are registering oversold readings that have not been seen in EXT in some time, this combined with EXT currently trading at or near some important support levels on mutiple time frames leads me to the conclusion that this is a good place to think about going long EXT.

I feel that the consolidation is complete or near to complete therefore any further short term selling pressure should be treated as a buying opportunity.

For Confirmation look for the share price to break through and hold the resistance lines, also look for the weekly stochastics to cross back up as this i feel will lead to a new multi week rally(Market conditions permitting).

Its nothing short of amazing what EXT has been able to achieve during very tough economic conditions and with the uranium price remaining depressed.

Can you imagine what would happen to the share price if economic conditions continued to improve and the Uranium price started breaking out......??

Good Luck!!