KXL's long term price outlook continues to look higher.

The shares for the intermediate term, following three exhaustive attempts to better the 5 level over a two and a half month period, have stabilized after a severe percentage drop took KXL from about the 4.75 area to the 2 level for the month of January. The 2 level is a significant support area as it is old resistance from 1992 on the long term chart. Once a resistance area has been taken care of with higher prices it reverts to a support level.

What's interesting is that along with the 2 dollar support area for the past few months it had also been close to about the same chart location of as ascending 200 day moving average line. The 200 day average in the last days of March made contact at 2 and today, it is at 2.50. These two factors have given great technical support to KXL's share price. Believe it or not, there is a technical following of buyers and sellers that gives heavy weight to the trading guidelines of established rules of Joe Granville concerning the position of the 200 day moving average line. One of these rules applies to KXL, "Anytime a stock sells below a rising 200 day moving average it should be bought." This scenario appeared four times in late March, early April, the 3rd week of April and recently in May respectively at 2.00 to 2.10, 2.10 to 2.05, 2.18 to 2.05 and 2.50 to 2.28. The prices are approximations.

For all of the year a 100 day moving average line has been controlling KXL to remain in a lower biased trend but the strength of the 2 dollar long term support area has held it tendency in check nicely. The intermediate direction of the stock remains neutral.

The short term direction of KXL is most interesting as are all short term directions on any chart. These short term directions can change the long term, intermediate and shorts term outlooks in a hurry. In the case of KXL we have many things going on at once. First, we have KXL trying valiantly to stay above the 200 day move average line at 2.50. Today, so far, it has firmed up to 2.60 after almost having made contact with it at 2.53, a good sign. Connecting a 5 high in December for 2007 to a 4.75 high in early January by a straight line and continuing it lower it bisects, roughly, the 2.75 area or so. All these prices are approximations. This area should be considered resistance for the time being. If the shares decide to trade above this area it would be positive. Also, at the 2.75 location is the upper band of a Bollinger Band which lends a little more short term resistance. Google Bollinger Bands for more on these bands and how they influence stock prices. It's worth the time to get a little education here as these Bollinger Bands are heavily relied upon by the traders. Higher up at about 2.87 is the falling 100 day moving average line which will offer a degree of added resistance.

So, in summing up the short term outlook for KXL it's appropriate to state that there currently exists three negatives in restraining the stock from moving higher in here: The descending trend line from 5, the decending 100 day moving average and the Bollinger Band all about in the same general range area of from 2.75 to 2.87. The one positive factor is the ascending 200 day moving average line currently at 2.50. If the 200 day line breaks we can count on buyers coming in who believe in the guideline of rules which state that breaking under a rising 200 day average is a buying opportunity

To say the least, the stock's will to move higher in here will be tested over the immediate weeks and possibly, a few months going forward. Let's hope KXL's will is strong and it takes out the above resistance areas and it reverses the intermediate trend from neutral to higher.