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.

Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.

Keep up to date on the latest financial market news.

Receive a daily newsletter with stock highlights, ETF rankings, weekly market focus and others.