PNV - Chart, page-7324

The current price may be sitting on the H&S neckline.

Note that volume has been falling all the way through the right side shoulder formation and that the fall has been decelerating as volume has decreased over the past three weeks indicating the current short campaign is losing momentum. The stock has seen support kick in at around the current price level over the past three weeks which is exhausting the shorts campaign.

I think there will still be an effort made to push the price lower on any market weakness. The COVID-19 surge on the east coast and in the USA and talk of poor economic outlooks might see the overall market under selling pressure. The XAO seems primed for a move and the odds would have to be on it going lower. The XAO has met resistance at the 61.8% Fibonacci retracement level of approx 6,200.


Furthermore, I don't think any good news out of the company will hold up against any market downturn. It is only true longs that will see through any risk-off sentiment in the overall market. PNV is a high PE pre-profit company and is likely to remain exposed to higher risk of a pullback in a risk off overall market pullback.

The P&F for PNV also suggests there could be further to fall in this current move



Summary, while the price seems to have consolidated at the current level for now and the down trend appears to be exhausting, overall market conditions could see further weakness and a push down to $2 or below.

Then, after the rain comes the sunshine.