Coordinated US industry response to Fukushima10 June 2011 "Three...

Coordinated US industry response to Fukushima
10 June 2011
"Three electricity industry organizations have joined forces to integrate and coordinate the US nuclear industry's response to the Fukushima accident in Japan. Meanwhile, a poll indicates that worldwide public support for nuclear energy remains high despite the accident.

http://www.world-nuclear-news.org/RS-Coordinated_US_industry_response_to_Fukushima-1006115.html

Just as sentiment changed irrationally out of fear and dramatised media, it will reverse (once again) based on logic and reality.

Aside from this...

By any stretch of the imagination PEN is now is way oversold area on the charts. If we are to believe the chartists that stated PEN was in way overbought levels at 15, then using the very same measure PEN should technically bounce of the current level of 7.5.

I agree that 7.5 is a critical level and must hold or PEN could likely fall further and possibly even re-test the Fukushima lows again. However I now firmly believe that is unlikely as the current level of 7.5 has been tested post Fukushima when it briefly touched 7.4 then bounced only to re-test 7.5 again just 3 days later.

Clearly a BOT is in control and isn't too pleased to see PEN above 7.5 nor below 7.5, the PALA buy level, for whatever reason. We could speculate on why this is and I have my own theory, but I will refrain.

I will be the first to admit PEN isn't looking too flash on the chart at present and is at a watershed mark. It has broken the 150 day MA and is now sitting at the 200 day MA. Next test, if it is to do so, is the 300 day MA should 7.5 not hold. If I was just going by this chart alone and didn't know PEN as well as I do I would be selling at this point and not a buyer. Neither of those are the case with me.

Logic would have it that with the now imminent news flow that it will turn up positive, however logic is seemingly very scarce at the moment in the market. We are also at the end of the tax year and the last of the selling to realise losses may, or may not yet be over.

I also often speak of the OBV (On Balance Volume). Although the longer term trend remains up, it is clear it has slightly been in the favour of sellers but ON VERY LOW VOLUME. This isn't telly me big players are selling, it is telling me the BOT has the upper hand with the petty sub 50 share lots and small holders are the ones letting go, right into the willing arms on the way down to where we are now.

What do I think should happen and is most likely to?

I believe we will see a very strong bounce of 7.4/7.5 and a re-test of the 150 day MA at 9.3. A golden cross in the reverse will see us back a few more pegs, but I believe that is highly unlikely.

Just my musings in my boredom tonight.

PEN Daily_Multiple Moving Averages (MMA's)...


ps:
For the record, I am sincerely only too pleased to see others (real) T/A views as I always have been despite comments to the contrary.

Have a great weekend!