Update on CNEH (NEP)

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.

Why would NEP drop being as profitable and valuable as it is? Because the people who know this want to accumulate as many shares as possible. How do you do that at a good price? Drop the share price and hold it low for some time to scare people out of their shares.