Pacific Gas's Corrective structure likely over

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Pacific Gas Corporation (PCG:US) corrective structure likely has ended after a strong break above US$14.25 resistance turned support. Furthermore the overhead resistance has been broken. The ABC corrective wave has ended after the last leg of wave C has a terminal divergence with oversold signal by the midi-term stochastic and 23-period ROC.

Momentum indicators:

Long-term MACD is showing a potential bottoming crossover.

Stochastic oscillator has confirmed the oversold signal

23-period ROC shows a bullish divergence.

Earnings was previously bad after being hit by higher operating cost. However. after the bad NFP numbers, the Fed is likely to perform a rate cut, which in turn may benefit utilities based companies as financing cost may lower.

PCG may target 18.00 in the longer term period. 12.35 is the major support.

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