Notice on the daily chart above that CNEH's price action confirmed a double-three complex correction. Instead of bottoming at $4.03 after completing three waves down, CNEH made new lows after the earnings report. Thus, Wave-A is the first "three-wave" pattern. Now Wave-C would be the second "three-waves" in the double-three. A drop below $3.30 would be necessary to complete Wave-C.
I am guessing that $3.00 will hold as there is plenty of support in this zone:
- $3.15: 61.8% retracement of $1.61-->$5.68
- $3.07: Wave-C = Wave-A, a common relationship for corrective waves
- $3.00: descending channel support for next 1-2 days
- $2.93: 50% retracement of $.17-->$5.68
At $3.00, CNEH's P/E would be 5.36. Seems awfully cheap for a stock still growing at 100%+!
Wave-A took 16 days to unfold. Wave-C has taken 12 so far. Therefore, I would expect CNEH to drop for another few days before bottoming.