PEN is a worthy opponent but the way I see it is that one of two...

PEN is a worthy opponent but the way I see it is that one of two things will happen with it over the next couple of sessions.

1. It will either explode to the upside; or
2. There will be a significant fall

It needs to stay inside the parabola and it looks to me like it's right on the edge. The potential of an explosive move to the upside imo is much lower than the potential of a fall putting the risk/reward scenario at too risky. BUT, it's a very liquid stock so easy to exit with a stop loss.

I like the way AGU has consolidated above a gap. That is strength. The key to my post on 7/2 was that large daily gains were likely to start occurring. Since then, the price has moved 46% (PEN has moved 25%....still ok) but what I am looking for is days when it moves that much. (That said, I only hold options so most of these moves have resulted in good % gains)

But like PEN, AGU is starting to look like it's forming an exhaustion phase where longer term consolidation will be needed to sustain higher prices. I'd say this will probably coincide with a placement of some sort. I'd like to see that somewhere in the mid teens, but we will see.

Marchello