Bellatrix Exploration Ltd (Canada) BXEFF

RE: Could we see 3 bucks?

[Wellsitter]

The chart says it's not likely that $3 is in the cards. There is a cement wall at $3.32 as it is the 38.2% fibo support, the 50 day and 200 day moving average and the location of the bottom trend line. So there are all sorts of good reasons to expect a bounce off of all those supports. Statistically speaking, it an 85% likelihood that $3.32 won't be violated so the odds are heavily in your favour if you bought down here.

If however, $3.32 doesn't hold then the next support is at $3.11 and then all the way down at $2.65 which are the 38.2% and 50% fibo supports from the big move from
.70 to the $4.60 high. But the fact that the current trend channel had been violated would keep me on the sidelines until a new trend is established. That is; I wouldn't necessarily start buying at $2.65 either.

All that said, I would be pretty surprised if $3.32 is broken unless the price of oil takes at least a further $5 drop.