CNEH once again looks ready to roll

I last posted about CNEH here. I believe we are close to scraping bottom for the downtrend that began in July 2008, and price should soon start it's next upleg to new highs. I believe buying at prices below $1.5o will prove to be a good investment decision.

The elliot wave chart above shows that after a very nice 5-wave rally, CNEH has corrected in 3-waves. Wave-a was sharp and fast, while Wave-c has been shallow and drawn out. Wave-c has formed positve MACD divergence, and volume has been shrinking dramatically as the price range has contracted. During the same period, the overall market has tanked and oil prices have plummeted. The fact that CNEH only sold-off lightly and on low volume, in spite of these general market conditions, is extremely positive.

Currently, price is holding steady at the 78.6% fib. I could see price dropping quickly below $1.30, but it should then rebound fast and start an uptrend to new highs.

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