Baytex PF Chart - why share price is stuck in the mud Though spring is far off, Baytex is spinning it’s wheels and can’t seem to gain traction. I pulled up a point and figure chart over the weekend, and spotted something interesting. There is a triangle wedge going back to a peak in 2016 that forms an upward barrier, even if only psychological. This wedge is drawn through the period of covid on the bottom. A standard sharpe chart used by most today would make this harder to see. I have no way of positing the chart, or I would. The link will not work.
The point to this is, a PF chart makes it easier to determine upward resistance in share price, and downside support. I will do my best to illustrate this with text.
$4.62 Canadian, is both a push to the top of the wedge, with double, and nearly triple top resistance. Some people refer to this as a flag. This is confirmed by a lot of volume traded in the area just below it. Baytex will have trouble pushing past this point, and I believe this is some of the reason we are stalled. Technicians are waiting for a breakout, significantly above this level, before adding, or momentum trading.
** Shorts experience thermonuclear meltdown, if we get here rapidly
5th resistance level $8.40
4th resistance level $7.14
3rd resistance level $6.30 Point of rapid price increase above this. Not much volume above.
2nd resistance level $5.88 (Strong)
1st resistance level $5.67 (Strong)
Baytex is $4.62 as I write this. VERY STRONG RESISTANCE Here, as we have experienced.
1st support level $3.15
2nd support level $2.94 (Strong)
3rd support level $2.10 (Very Strong)
4th support level $1.68
** Lookout below
Do not make decisions based on this. It is more useful to use this as a reason to relax when the stock stalls.