PEIX , along with the rest of the ethanol sector, has taken a big hit recently with the drop in ethanol spot price. With corn and ethanol dropping at the same time, the future looks a bit unpredictable. So, lets have a look at the chart. Price has broken through the bottom of the pitchfork drawn. I have added a clone of the last quadrant to help look for possible points of interest. The big question is where are the buyers? I have also added a horizontal blue line. This is the first place I will be looking for demand/buyers. If they are home, it may provide an excellent place to catch sail on the prevailing wind.
Comments
littleriver
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With crude falling sharply yesterday, here is a look. We zoomed through the center median line of cloned fork. It is likely this goes much lower.
sublimares2
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Nice TA
littleriver
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Thank you for the feedback sublimares2. I was recently introduced to Tim Morge's work. Intrigued, I am in the process of learning now. This chart is the result of this study. Your reply really encourages me to keep going. Thank you!
sublimares2
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Your welcome. I am not so much into TMs work that is for sure something interesting and Andrews Pitchfork related. I think we will have a reversal impulse wave at 62%fibo -15.58$. Anchor points of the pitchfork must be picked up carefully.
littleriver
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True; I can almost hear Tim saying, " here is where we have to really listen to price carefully". The whale watch is on. :)