No news has surfaced to explain the move in any other fashion and so the best guess is to stick with technical triggers. It was a long drive down for the price, and meantime many trending indicators had become to show the inevitable bottom approaching.

The strongest forecast could be derived from the MACD which had been opposing the price movement direction for over a month. ADX has been showing some convergence and crossed upon the breakup. Volume had been rising for the past two days but with negative price movement this didn't cause too much of concern.

What should be expected to happen next is some price contraction. Though the move ended with high volume and there might be some space for follow through, usually such large moves are followed by at least 30% correction.

If more investors would decide to cover their position though, the stock might actually climb on Friday as well, but such assumption is a quite speculative one.

First off the price had been abnormally boosted couple of weeks ago upon a merger with Paragon Toner Inc. That is an established business and should generate some value for Lexon. Moreover, Wednesday news came out Lexon has 7inkjet.com, another inkjet and cartridge related business. This was a second significant step towards a money providing business.

On the other hand, the recent share price reaction gives out the company is not yet worth investing in. As a public entity, they have reported no revenues, had almost no cash on the latest disclosure and are making acquisitions by issuing stock. Until some positive numbers appear on the financial statements, their stock is likely to retain the current characteristics as well.

There was a huge price reaction to the first merger. Some decline has been witnessed since, but the stock is still very volatile and what really matters it seems to trade in a specific channel. That channel seems to be quite strong and thus may allow swing trading. After all, the price has fluctuated between $0.06 and $0.09 for over half a month now. The largest problem here is the issue of quick entry and exit though.

From the looks of it, their collaboration agreements on new drug developments are going quite good and have already provided some results. A good update on what's going on with the company, but not too valuable from the material perspective.

The management stated their recent fund raising has been "going extremely well" but didn't provide any numbers. As for their income generation, it looks like things will not be changing soon. They will be counting on royalties as their income source for the nearest time to come.

The finalization of image processing development on PAP Smear interpretation test is one of the more promising things in this update. So is the undergoing discussion for commercialization of their colon cancer molecular diagnostic test. But, yet again, no dates or calculated potential revenues from such, would be, sales were disclosed.

Basically, what we will be seeing in their upcoming financial statement is somewhat increased cash reserves. Until there is more significant news on product development or commercialization the stock price won't be making such huge moves as it did on announcement of partnership agreements back in early October.

The rundown that occurred over the past couple weeks originally seemed like a correction but recently was somewhat strengthened by the announcement of company's fund raising activity which involved stock issuance.

Although there was no direct share dilution, the issuance of 14.8 million worth of convertible shares cannot go through unnoticed. With the company's market cap of just 145.27 million that makes up over 9% of its value. Although this is just potential dilution, such an amount is still rather extreme.

On the other hand the long term benefits should offset this temporary drawback. The funding will allow complete the construction and purchasing equipment for their Gujiao facility. This facility goes through the company will have the storage for 70 thousand cubic tons of fuel oil and a railway connection to the depot.

Operating as diesel and gasoline distributors the storage capacity is one of the key aspects for the successful business of Longwei so the decision to expand seem like something that will aid their business in the long run. However the material improvements of this expansion are yet to be witnessed.

Reference:

More details on the funding

Current rally was pretty impressive to date already and even recently announced royalty payout obligation haven't added any fuzz to the outstanding accumulation. The price has already passed the major resistance points like 50 and 20 days MA's and the $6.50 level at which the previous rally attempt had stopped. It is possible it will climb all the way to the $7.25 level.

The move is currently sustained by significant volume and managed to turn around most indicators. RSI has moved up significantly and will probably soon hit the overbought level, MACD passed the signal line a day ago.

With the inevitable correction underway however the price is likely to pull down back to $6.50 level after the accumulation is over. Another possibility is to use the 50 or 20 days MA as support. However these speculations will only come in play if no other news is going to fuel the rally. And for the moment, let's enjoy the rise.

Reference:

http://www.exelixis.com/

The price was actually on the uptrend over the past half a year and only broke down just before the earnings announcement. It is not credible to expect the return to the pre-fall levels, however some resistance points were can be identified based on that.

Currently the best bet would be for the price to climb up to at least $2.5 where some major resistance should occur. But in any case that is based on price performance that is more than half a year old so it might have lost liability with recent changes. Be it breach that level, another point is a more recent $2.8 which is likely the highest point the price could reach under current conditions.

In recent days indicators have moved to the positive side supporting the idea of at least some rally continuation. RSI has moved above 30 level, 4 day SMA just turned around and ADX indicates a pincher so at least we could say it has already bottomed out.

The downtrend was also just a correction after a vast price rally when the previously pink sheet listed company managed to get on the OTCBB. Now that the news faded away support of any more substantial rally is a question of changes in fundamentals or at least outlook.

So can the price bounce off the $0.045 level? There are several factors in play increasing this possibility but this support line actually doesn't seem to hold for a prolonged period. First of all there is news that Silver Falcon has finally established a Diamond Creek Mill office, meaning they will proceed with more managed operations at the site. However with no material side in it the news should not have much effect on the share price.

Another reason for a short term rally is the support of stock markets rebound. But as already stated, this will probably turn out to be just a one or two days rally. Since it hasn't been an officially reporting entity up till now there is no fundamental base upon which the price could make a sustained move.

Reference:

http://www.silverfalconmining.com/