For some time I have suggested that the $2 area on the KXL chart represented an area where strong support exists. A few days ago the stock took a "painted dive" below this level. Jim Sinclair and Jim Puplava have stated in past commentaries that the dark side of markets, especially in low priced natural resource shares, paint these charts through illegal naked selling to freighten investors.

I consider forcing the shares below the $2 level to be such an event. When one looks at a 19 year old chart of KXL's price activity is represents value at current levels, even if it's under $2. My interest in viewing markets comes from long term perspective by the use of long term moving averages. A few days back KXL hit $1.75 which is the area of the ascending 500 day moving average line which is an intermediate to longer term support area. This could change in the future but for the moment, this is reality.

We don't hear about it in the news but there are wealthy, successful people that know real value when they see it and most of them play their long term game using these important averages which everyone should be aware of as a helpful aid in understanding value, especially when price weakness approaches them. These charts with long term moving averages can be accessed at http://www.bigcharts.com free of expense.

In the spring of 1992 KXL made an important high at $2. It would not be until 13 years later in the spring of 2006 that the $2 area would be surmounted by the share price on its way to making at 2006 high at the $3.70 level or so.

The $2 area is massive support with significant back-up support at around $1.75. Sure KXL has a few stock chart diffuculties ahead, but the important point here is that the bullish long term picture is secure. The stock at these levels represent good value based on a subjective take of technical analysis using the important support level plus the trailing and ascending bullish 500 day moving average line as a fire department to put out any further bearish flames concoated up by the unleashed miscreants. IMHO

Long and Strong

Go KXL!!