In my last post on CNEH (now on the AMEX as NEP), you can see that I was a bit early in callling for a correction. However, I unloaded the rest of my position on the way up, and have been buying back in on the recent correction. I think we have some more downside on NEP before hitting a correction low. My estimate would be that price bottoms within the $2-$3.50 range, so I will be acculating within this zone.
You can see that the rally from $1.25 to $6.33 was in 5-waves. I believe the fundamentals of the company are strong enough to warrant further upside, but I also think we need to see some further corrective action to washout some more weak hands. We should get another down wave to complete a 3-wave correction. You can see that there are some strong long-term trendlines that are controlling price action, which should act as good support as NEP bases for the next rally.