PEIX Still Looking Good

The last major run in PEIX was good for over 400% and this in less then a month.

 Triangle consolidation, volume is correct for the pattern. The price pattern implied target is about $1.60 or nearly a 60% gain, but PEIX could certainly overshoot that target.

 Here are some of the last daily accumulation cycles, notice how flat price is at the first one to the left, typical accumulation area. Think about how you would accumulate a huge block of a cheap stock like this without driving price against you and you can understand why we often see accumulation in flat areas or in to falling prices. The first run was good for over 500%. The second accumulation area was in to falling prices and ran nearly 175%. Then we saw a bullish descending wedge, another flat area and a run of well over 500%. We are now in another flat area in the form of a triangle. The daily chart still looks excellent.

 This is a closer view of the current daly chart.

 Here's the hourly chart and the current triangle, there are several nice positive divergences in the triangle.

The last chart showed a recent positive divergence near the apex of the triangle, here we see it on a 5 min chart as well and in to a flat trading area. I personally like PEIX right here, a stop can be placed below the triangle, but if you do that, make sure you give it sufficient space as a head fake move below the triangle would not be uncommon before an upside break out. You could also wait for an upside break out as well. I like prices here because the down side risk s less as prices are near the support of the lower triangle line.

Remember that this is a speculative trade being a cheap stock and risk management/allocation should reflect that.