Profire Energy, Inc. (PFIE)

[Getitgogone]

Anyone else notice the nice looking cup and handle chart pattern that has formed?

Seems to me from what I have researched on these cup patterns we have just reached the point of breakout off the handle.

I'm looking at a 6 month chart

Shows an uptrend back in March ... then the "bowl" of the cup forming and the top of the right side of the cup around May 31st ...

the handle is now at breakout

Also in the back of my mind have been wondering if the company has actually started to do some buying some time in the last 3 days or so ... not sure if it is them or traders that are working off this cup and handle

Apparently we should see large volume on the breakout ...I.E. when the handle passes through the top of the cup the 2nd time ... in our case around 1.13

I expect if this is a true cup and handle chart pattern those 1.15s should get ate up and the push through 1.20 should happen soon with more than normal volume.

The failure rate on a pattern like this is usually around 10% but the additional volume should be a "confirmation" on the trade.

Normally the stock will then run the distance from the top of the cup to the bottom of the cup ... our case about .30 cents which makes sense because it would put us at a restance point around 1.45 ... the highest we went back in Nov. was 1.43 so it all kind of makes sense to me.

Not going to get all crazy with a fancy chart but will post a link you can see it here >>>>

http://stockcharts.com/h-sc/ui?s=PFIE


Since I am long the stock naturally I think it is undervalued and we should already be over 2.00 considering the firming up of oil prices ... so none of this is surprising me ... what does surprise me is that it is taking so long to get back over 2.00