I only noticed this potential setup yesterday night and it really broke out earlier today. I had initially wanted to collect some when it was still in the triangle but I only managed to collect 5lots at breakout point and another 5 on the way up. My average is about 74c.
Last night, I noticed this flag formation with a nice decrease in volume in the flag whilst having a strong long flagpole (15c!!) The breakout point was determined at 72.5c but I was thinking that breaking 73c would be safer. In the end, the 2nd set of 5 lots were loaded after 73c was broken... and it did break up really fast and convincingly too. Daily charts show nice strong volume on today's breakout. The red horizontal lines are fibonacci lines and today's closing of 75.5c is at the 23.6% retracement. It's on course to go test the 38.2% line which also happens to be the target price of this breakout.
Along the way there are some resistances like the natural 80c resistance as well as a falling gap which is to be closed at 82c. 85c could be a problem as it is near target zone plus it was the previous mini peak. My intention is take profit somewhere here if so allowed. I have checked both RSI and stocs and confirmed that they are not yet in the overbought zone and thus more upside to come... especially with such a bullish Dow tonight. However. oil has also dropped and may affect PEC to some extend.
Here's the weekly chart. We can see that the target zone is somewhere near 100 weekly MA... All in all, this target looks feasible.
Another sweetener is that PEC has 2.5c dividends which will XD on 8th Nov. I don't hope that it will take that long to reach target. Hopefully it hits target within the next week :)
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