PennyStocking students understand that while the Supernova chart patterns on commodity plays like Pyramid Oil Company (PDO), Fieldpoint Petroleum Corporation (FPP), Royale Energy, Inc. (ROYL) and Mexco Energy Corporation (MXC) make them seem like they’ll just continue to collapse for weeks and months just like your typical pump and dumps like KENTUCKY USA ENERGY INC (KYUS), FORCE ENERGY CORP (FORC) and BIOSHAFT WTR TECHNOLOGY INC (BSHF), they don’t.
Because their prices are tied to something much more real than spam, something many people call “black gold”. And as you can see from the charts below, some are barely bouncing (PDO) and (FPP), while others are actually breaking out to new highs (ROYL).
However you play ‘em, long or short, short-term or long-term, recognize this one basic truth and you’ll be much better prepared for the volatility that is to come. Me, I’d be short KYUS, BSHF and FORC long-term if I could find the shares…these oil plays I won’t short again until they either go up too any days in a row again or, ideally, when they crack their recent lows, a hugely bearish sign that would prove these spikes are just temporary.
Posted in Breakdowns, Charts Rock!, Patterns To Buy, Patterns To Short, Short Selling, Supernovas