As stated in yesterday's report. There was a small probability that Exeter Resource Corp. (NYSEMKT:XRA) would gap-higher at the open.
That is the case at the beginning of the session. We are re-entering XRA at 0.66 with a stop at 0.62.
If XRA proceeds to 0.62 from this point, it is very likely that we are headed to much lower levels.
The volume from yesterday's session should have resulted in a break below 0.62. Since this has not happened as of this writing, the conclusion then is that there may not be any more supply.
Of course, it can all change in an instant. However, contact with 0.62 from our standpoint indicates a high potential for a break-down.
Therefore, the risk here should be minimal at 4-cents/share. We are either going to lose the 4-cents/share (and head to much lower levels) or this is a potential bottom for XRA.
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Disclosure: I am long XRA.