Yes, disappointing to see the ann after market on fri, I wasn't expecting that! Personally I don't subscribe to conspiracy theories but would suggest that they are like 75% of other investors who buy high and sell low. After all plenty of other places where you could have put your $'s to work in hindsight.
IMO this would be the perfect time for some good company news and hopefully get some upward momentum to track the rising XEJ and oil price. However I will just stick to the technicals here and offer the following chart.
The descending wedge is our short term destiny until we break out. Currently we have support at 2.5c (yellow line) The 3 white horizontal lines are the current distribution. The top red and bottom green (61.8% and 161.8% Fibs) are the 2 most important outside that distribution for technical reasons.(the 61.8% is next support)
Worst case is that the 2.5c level fails. It hasn't yet but if it does I would then expect a retrace to 1.7c
Best case is that 2.5c holds and we create a sideways range to around 3.5c.
Either way I see the outcome will be known by mid August. If company news is OK, based on history repeating I would expect to see ETE back at between 11.5c/14c by December as a measured move target.
I see that they have 3 options in releasing the shares which one they choose will decide theirs and our short term direction.
ETE Price at posting:
2.7¢ Sentiment: None Disclosure: Held
