technically where to

In every sense, as several others have also stated, there is very little argument that ERN is now technically way oversold.

In a recent post I had mentioned 75c as support level. Obviously once this failed of course, all bets were off and it is/was anyone's guess as to where the stock would finish.

It is interesting and somewhat encouraging that the stock seems (at least in the short term) to have found support at a level representing approximately a 50% pullback from the lows of Aug last year to the high of $1.10. There is a chance the share price could form a new base to go forward from here but it is to early to speculate on this right now.

The daily RSI is bordering on being extreme oversold which would imply that regardless of the medium to long term picture there is scope for a decent short term rally from current levels. Extended deviation below the short term moving averages is also supportive of some sort of 'recovery' rally to correct this situation.

In the absence of any disastous announcement in coming days (unlikely after today's announcement) I will stick my neck out and say that a rally back to 75c could be a fair possibilty.

A reminder that this purely a view based on my limited charting experience and should not be taken as anything more than that.