Excellon Resources (EXN.TO, EXLLF on Other OTC), a silver stock, has "taken it on the chin" in recent months, but appears to be powering up for a strong advance and right now is on the verge of a major breakout. It has been basing for about 10 weeks following a period of severe decline between late March and early July. Upside volume has been building significantly over the past 4 weeks with the price just below a still rising 200-day moving average, with volume expanding in recent days especially, driving up the OBV line, and suggesting that breakout is now imminent. It takes to annotate the charts, so this Email alert is being sent to you immediately, so that you can examine it for yourselves whilst I prepare the charts which will be posted on the site ASAP, and you will of course be notified. This stock trades in good volumes on the US OTC market. At the time of writing it is priced at C$0.80 and $0.783 at about 12.15 pm EDT.
Since the Email alert it has firmed slightly, probably in response to our buying. The charts below tell the story of why it is regarded as a strong buy at this point. The stock is thought to be on the verge of an upside breakout following a prolonged period of reaction and then base building, which is suggested by the increasingly positive volume pattern and bullish volume indicators, especially the Accum-Distrib line, which is unusually strong. A breakout by silver to new highs, which is expected soon even if there is a minor reaction first to alleviate the short-term overbought condition, can of course be expected to lead to a powerful uptrend in silver, which will provide added impetus to a devloping uptrend in this stock.
Excellon Resources website
Excellon Resources Inc, EXN.TSX, EXLLF on Other OTC, trading at C$0.81 and $0.8028 at 1.37 pm EDT.
Posted at 2.00 pm EDT on 16th September 10.
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