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Peyto Exploration & Development Corp. - (PEY.TO) - January 4, 2023

Energy producers have started the new year in decline along with energy commodity prices. Peyto Exploration (PEY.TO), for example, started to slide in the rankings of the SIA S&P/TSX Composite Index Report a couple of weeks ago. Yesterday, Peyto dropped out of the green zone into the Yellow Neutral Zone after falling 32 positions to 64th place.

Back in November, a rebound in Peyto Exploration (PEY.TO) shares was contained by resistance near the $15.00 round number and since then, the shares have come under distribution establishing a series of lower highs and snapping an uptrend line.

Yesterday, Peyto staged a major breakdown, dropping below their 50-day moving average and taking out $13.00 support on a spike in volume, indicating a significant increase in selling pressure. Potential downside support appears in the $11.00 to $11.50 zone with initial resistance dropping to the $13.00 breakdown point as previous support reverses polarity.

This 1% chart highlights the severity of the recent downturn in Peyto Exploration (PEY.TO) shares. Back in December, a triple top breakout failed at one row in a bearish Bull Trap that quickly reversed into a bearish Spread Double Bottom breakdown. Since then, the shares have been under distribution, staging a second Bull Trap that formed a lower high, along with two bearish Double Bottom breakdowns, including the most recent one which has already extended into a bearish Low Pole this week.

Based on previous column lows, potential downside support tests on trend appear near $12.15, $11.55, and $11.22. Initial resistance appears near $13.05 based on a 3-box reversal.

With its SMAX score falling to a bearish 5, PEY.TO is exhibiting weakness across the asset classes.

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