nizar said:
U reckon?
Doesnt every1 already know this ie. that drilling will commence next week, from the Kalahari announcement? It was posted here or maybe on S/S or H/C... cant remember...
I think there will be some eyes also on Kalahari too i imagine...
I took a position in EXT in early FEB, still waiting for that announcement....
ok, everyone knows this but this stock HAS the characteristics of short termer profit generator.
if you notice, EXT had traded for the last 1-2 months in a rectangular path between 9.8c - 8.9c religiously, so it hits the roof & then hits the floor.
Many analysts taken that as an advantage & starting buying at bottom & driving volume high & of course SP with will go high with volume then they sell on 9.7c - 9.8c, it happend 4 times in the last 2 months & I only caught the wave last 2 times only
the proof for the rectangular path trading range is all drops were not volume driven drops, practically, those who got in on the volume spike & were expecting a big increase had realised that SP stopped at 9.8c & then decided to sell immediatly or even with a loss at 9.5c or less.
why will it go off when news come?
you'll have longs who will add to their position.
you'll have volume traders/day traders who want to catch the volume wave.
you'll have investors who are still scared & will go in after making sure that everything is fine (after drilling) & on track & U story wasn't funny story like others in market who had funny stories before.
out of all these guys, only volume traders/ day traders will sell but will NOT sell imediately but will like to see SP go higher & higher & they'll only sell on a sign of reversal.
So after drilling news come, imo, its in everyone's intrest to pay more for shares so price can keep going higher, it re-assures longs, it satisfy volume/day traders & if proves a point to investors & it makes them more comfortable trusting EXT & joining in!
cheers,