I am encouraged by how well KXL is holding its gains in an unsettled market that is clearly dominated by short term traders.  With the huge volumes that have changed hands since the last batch of high grade results came out, I think most of the shareholders that were not thrilled with the company have now moved on to other things.  I would also speculate that quite a few new longs are now on board.  The traders will eventually disappear when things settle down and the stock rolls over a bit but I believe a new support zone will be established that will remain well above a buck.

I think we can look forward to some good news before the Cambridge Show in Toronto next week, just to keep the buzz going.  The gold zones that are awaiting results are so intensely mineralized that it would not surprise me at all to hear of very high grade numbers.  And all of that is nice, but the real value in the place will come as exploration continues to test further along the vein systems and to depth.  That sort of thing takes months and years to accomplish. 

Overall, I still think KXL is going to trade between $2-3 in the short term, and then fall to a new higher support level later in the fall to consolidate.  The company plans to get as many as 3 drills turning for the fall/winter and then we should move higher from there, perhaps to the $5 level with more good numbers.

All of the above is just my opinion, and I get it wrong all the time when I try to predict the market.  I think there is enough meat on the bone to warrant riding the bull on this one though...

cheers!

COACH247