Saturday, May 18, 2013

PGH May 19 2013

Pengrowth Energy PGH

PGH Monthly Chart
PGH Monthly as of May 2013

Looking first at the monthly chart,the things that leap out are: 1) PGH is down around where it bottome previously, after a long round-trip up to the teens; 2) it has a history of fierce bounces of of bottoms, once those bottoms clearly are in.

PGH Daily chart
PGH Weekly Chart, May 19 2013

Looking at the PGH weekly chart, it looks as if a wedge is forming as in a mature state. A breakout one way or another is in the offing.

PGH Daily Chart
PGH Daily May 19 2013

Finally, looking at the daily, an interesting inverse head and shoulders pattern appears to be forming. In conjunction with the wedge pattern, this gives a slight edge to the idea that the breakout, when it comes, may be to the upside.

PGH pays a big dividend and is a speculative Canadian energy company. It fits well into a retirement account, and there is a DRIP with a 5% discount if you choose to sign up for it and get paid in shares rather than cash. It is a Keystone Pipleine play, as costs of transport eventually would go down if that pipeline were approved and built.

This is a play for bottom fishers only - you know who you are.

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