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Paul Mosgovoy
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  • Exeter Wrap-Up For 10-16-13 0 comments
    Oct 16, 2013 5:15 PM | about stocks: XRA

    There was a small but still probable point during the session that a pivot in Exeter Resource Corp. (NYSEMKT:XRA) had been reached.

    An entry was made in the vicinity of 0.66 after several buy‑side block trades (including a 20,000 share block) were observed.

    As stated previously, a push below the 0.62 level negates one of the conditions of the model required for large gain potential.

    Within thirty minutes after the entry, below the bid (purple on the tape) began to appear and then XRA continuing on with more selling. The decision to exit at 0.63 was made after observing several more block sells and one 20,000 share sell in particular. Whatever up‑pressure that had been observed previously, was being negated.

    As can be seen on the chart below, XRA closed at 0.62 on increasing volume. Volume increasing as price action approaches a support level tilts the probability to the penetration of that level. So, we are out again, but this time limiting the loss to only 3‑cents/share (as opposed to the 8-cents/share on the first entry):

    (click to enlarge)

    Charts by StockCharts.com

    Now on the side‑lines, we can watch and see what happens next. The next few days should be interesting as we may be able to see if XRA is going to head swiftly to lower lows, or if there is going to be support at the 0.62 level.

    There is a small possibility that XRA will gap‑higher (and continue higher) at the next session. With the entire sector GDX, GDXJ at lows for the year, there is always a possibility of a retracement move or short covering. If at the next session, the gap‑higher and move higher in XRA occurs, it will be discussed at that time.

    Disclaimer:

    This report is for discussion purposes and contains our opinions only. This posting is to publicly document our thinking and market analysis actions within the Three Ten Trading entity. The data was obtained from sources believed to be reliable. However, we make no guarantee as to the accuracy of that data.

    Investing or trading in equities, futures or options may result in a significant loss of capital, total loss of capital or a loss greater than available capital.

    We are not advocating any stock or in any way offering portfolio management advice or stock selection service.

    Respectfully,

    Paul Mosgovoy, President: Three Ten Trading, LLC

    Thank you for reading.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: XRA
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