I last posted about CNEH
here. Since then, I have learned a good lesson: in a bear market, P/E ratios mean nothing. At this point, I still feel that CNEH is a good value, but I am unsure of the short term direction. There are forces that could drive it higher or lower. Longer term, we may be in an extended correction.
The weekly chart above (in log scale) paints a sobering picture of CNEH's price action. It sure looks like 5-waves have unfolded from $.17 to $5.68, which would imply a 3-wave correction. At best, we are hopefully near the end of Wave-a of this correction, but that means that the thesis for new highs is probably out until the market bottoms. Crude may
have more to drop before bottoming, which may put further pressure on CNEH's share price.
The daily chart above (linear scale) shows that price is holding at the confluence of the 61.8% fib retracement and channel support. I hope this holds, because if it breaks, there is little support until $1.60.
The weekly chart above (in log scale) paints a sobering picture of CNEH's price action. It sure looks like 5-waves have unfolded from $.17 to $5.68, which would imply a 3-wave correction. At best, we are hopefully near the end of Wave-a of this correction, but that means that the thesis for new highs is probably out until the market bottoms. Crude may have more to drop before bottoming, which may put further pressure on CNEH's share price.
The daily chart above (linear scale) shows that price is holding at the confluence of the 61.8% fib retracement and channel support. I hope this holds, because if it breaks, there is little support until $1.60.
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