Pacific Ethanol Corporation PEIX : Ascending Trinagle Breakout

PEIX is candidate for a easy 15-20% gain. The ethanol producer (being on of the largest producer/distributors on North America) has been trading in a tight consolidation range of an ascending triangle for several days now with declining volume.

• Ascending Triangle formation, meeting textbook parameters, this chart pattern in a smoking gun for a bullish-reversal due any day now.
• Declining volume, also goes in par with further confirmation of the ascending triangles up coming bullish movement.

• Contracted Bollinger Bands also show a movement in price action will occur any day now.
• Momentum indicator is hugging 100 line, showing the current consolidation in progress as well

Overall PEIX has to move and sometime soon, as we have seen volume gradually fall lower and lower well below the 50-day moving average (of volume) its safe to say we should see a break upwards come Monday or Tuesday, Wednesday at the latest.

I predict we will see the triangle formation broken upwards tomorrow, and the run should be to $1.45-1.50 range.

PEIX: Strong Buy

Price Target: $1.45