Timeframes are crucial to understanding technical analysis, and more importantly, in implementing technical analysis effectively.
On Friday NexGen Energy (NXE.TO) broke key support on substantial volume:
NXE.TO (Daily - 1 Year)
The breakdown targets a move down to at least the C$2.30s, despite the fact that a key area of confluence is being tested which includes a long-term trendline, previous resistance, and the 200-day moving average:
NXE.TO (Daily - 3 Year)
Despite the fact that the long term trend is clearly higher, the short term trend is down and it is this trend which is controlling price action in NXE until proven otherwise. At some point (potentially within the next next couple of weeks) the long term trend could reassert itself and NXE could put in place an important low. However, until then it's a guessing game to figure out when the sellers will run out of ammunition and buyers will show up in substantial numbers again.
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