Tuesday, December 12, 2006

NXG Analysis for 12.12.2006

Monthly chart shows current support off an important LIS (line in the sand) at $2.58 range. This was the point of breakout to new highs into $4.82 where profit-taking took place. This current support area has brought out the early buyers back into stock.

Weekly chart shows early buying off the $2.58 low, and short term overhead resistance at $3.50 area. Last week showed indecision between buyers and sellers.

Daily chart shows a bullish gartley butterfly into a small .786 fib level. Early buyers started back intothe stock off $2.80 level, but were soon met with selling at the $3.20 area. Friday saw stronger buying, creating a bullish engulfing pattern. Last week's congestion shows indecision. Need to clear $3.20 decisively in order to be more bullish.

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