I haven't commented on PME for 16 months as it has been slowly losing value over that time, falling from the upper boundary of a potential price channel to the lower boundary. Price now seems to be tracking that lower boundary higher and if it can break and close above $50.55 there is the potential for a target of $59.

PME 8Apr22

18 December 2020

PME is a stock I bought into in October (see below) because I felt price was heading up to the top boundary of the price channel. It reversed off resistance and retraced all the way back to the lower channel boundary before rising strongly last week (8.5%). A close above resistance at $34.80 suggests a short term target of $40.55 which would be close to the upper channel boundary and a 22% gain on the current price.

PME 18 Dec20

23 October 2020

I saw some commentary on a forum re an inverted Head & Shoulder pattern with PME. I had missed this as it is sometimes hard to 'see the wood for the trees'!

While some of the following is a repeat of my earlier analysis below, I reassessed that analysis and feel it needs to be restated. I saw the break of a downtrend on the RH shoulder of the H&S pattern with a probable move up to resistance at $30 to make a cup and handle type pattern with a target of $37.50. I bought on the probability of that pattern so PME has been kind to me. The H&S would suggest an even higher target (but I'm expecting a bit of a pullback at $37.50). While last week put price back in an uptrend on the weekly, there is no valid uptrend along 3 troughs yet. That trendline is expected to be confirmed along the lower boundary of the shaded (possible) rising price channel. The upper boundary coincides well with the target level, further reinforcing it.
I'm a bit lost with Elliott Wave on PME. I previously thought the high marked '3' on the chart was actually the end of Wave 5 but looking at this again I think price is probably on Wave 5 (sub-wave 3 of W5?). Anyway that all looks good and suggests a long term target for a top around $47.50 might be on the cards (but a long way off so needs to be confirmed by future price action). PME could turn into a good long-term hold.

PME 23Oct2020

21 August 2020 (with 14 Oct update)

PME may be making a third attempt to break resistance at $30.20. If it manages that with some commitment, then it would have a potential target of $37.00 which represents a 42% increase on today’s price. Price may of course reverse off the resistance and a buy at this time would be aggressive. Price will remain in a downtrend until price breaks above the resistance at $30.20 but has this week broken above a downtrend line suggesting a buy might be imminent. If next week sees generally higher prices that may also trigger a ‘break to the high side’ and potentially a further opportunity to buy in. Gann 50% rule suggests that because the recent fall in July and August was exactly 50% (charting is magic sometimes), then price could be expected to rise 75% to 100% of the preceding run up to give an upper target of $37.49 which aligns very closely to the preceding all time high and is exactly the same target the resistance break suggests, making this a very strong pattern. Assuming price does head higher as hoped, then price should be on Elliott Wave 3 - the strongest and longest rising wave in a price cycle. 

Edit 14 October 2020 - Price continues to rise back towards the $30.20 resistance level and hence the above analysis remains in play.

PME 21Aug2020


Robert Norman

Phone: 0428 346 951
Email: robert@sharecharting.com.au

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