so what are tea leaes telling us???

Hmmmmmm....... whilst I realise that current price action is not so important to the end game (i.e. takeover) it does give me, as a long term holder in this puppy, so comfort. A quick look at EXTs chart indicates it will move quickly to $3.00 where the next resistance level will be reached. I see what is known as a symmetrical triangle pattern starting to break last Friday. It started to form on 17/2 and completed on 26/2. The price target of the break is the extent of the base which is $0.65 (i.e. high of $2.50 less low of 17/2 of $1.85). The breakout out point is aprox $2.20 plus $0.65 target gets you to $2.85 but what generally happens on strongly trending stocks is that they overshoot the mark, normally to the nearest natural resistance level (say $3.00).

For anyone at all interested a symmetrical triangle forms as a trading range with lower highs and higher lows and this pattern can occur in both 'up' and 'down' trends. these are commonly signals of a continuing of the current trend (in the case of EXT - UP!!!!!!). The thing that dicates whether the pattern will be a continuation pattern or a reversal pattern is the direction of the price break out. That break out occurred on FRiday with the full days range being outside the upper side of the triangle. The other important indicator of this pattern is that volume contracts during formation and expands on breakout. The start of that volume breakout also appears to have occurred on Friday.

While we all sit back and wait for more great news from zone 2 and further resource upgrades to zone 1 (plus whatever else comes from the Dome) its also nice to see EXTs chart showing other bullish signs such as:

- MACD bouncing off the signal line, not even cutting below;
- the 5,15 and 30 day simple moving averages looking like a chart in the middle of the last bull market
- price action hugging the upper bollinger band for the last 2.5 months
- strong directional movement shown by the ADX and DMI lines