Pacific Ethanol Inc (NASDAQ:PEIX)
Q: What do you think of 'action Peix?
How will the price stocks in the future?
A: We issued a Downtrend on PEIX on 5.18 @ 32 cents. Stock has been pretty flat since and our indicators show that it is trying to move up from oversold status but the declining moving averages are putting too much pressure. The MACD is negative and starting to tick higher but I would await a positive MACD and an Uptrend alert from SmarTrend before expecting higher prices, absent any earth shattering breaking news. The stock benefited from the ethanol craze and was the love of many speculators. As other stocks got cheaper, investors put more money into more established energy names, rotating out of spec plays. The company will need some positive ethanol news which tends to only come when oil prices are very high making ethanol a viable substitute.
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