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Pinnacle Energy Corp. is out with news today that bodes extremely well for the company’s future. The emerging independent oil & gas producer plans to make its foray into the coal marketplace in effort to diversify its energy portfolio.

PENC is reportedly pushing forward with efforts to execute an acquisition of a number of coal reserves and related assets located in Montana and Utah that management stated today hold the potential to significantly improve the company’s financial performance.

While preliminary details are limited, it is promising to see Pinnacle taking steps to facilitate growth. Although the coal market has slumped as of late, analysts are confident that a rebound is inevitable. 

Sure, the Obama administration pledges to invest heavily in renewable energy over the next decade in effort to reduce our carbon footprint and end our reliance on foreign oil. However, in the mean time, coal provides nearly 50% of the energy used in U.S. electricity generation. 

Until this figure begins waning considerably, opportunities for coal producers and potential coal producers such as Pinnacle should be robust.

Pinnacle Energy, Inc. (OTCBB: PENC) continues to perform as expected. The stock price, as expected, has been bouncing nicely off lower support and is just a penny and a half off the upper boundaries of our ascending triangle formation.

We have reached our first traget of $1.20 (Tuesdays Post - “A break of that level (currently $1.20), look for $1.25 followed by $1.30 and new all-time highs.”) and are watching for the break of $1.20 as mentioned last week.

Pinnacle Energy (OTCBB: PENC) is reacting as expected. Coming off lower support, the stock is up nearly 10% in just a few days. As stated Tuesday evening, look for “A break of that level (currently $1.20), look for $1.25 followed by $1.30 and new all-time highs.”

Triangle patterns are some if the most reliable (head and shoulders are the most reliable) in the technical analysis world. Barring any more economic or political earthquakes, we should be well above $1.40 by years end.

Pinnacle Energy Corp. (OTCBB: PENC) appears to be trading in an “accending triangle” pattern. Finding support in the $1.05 area and getting a boost off the lower trendline.

Trading a little higher both Monday and Tuesday it appears the selling has dissipated and buyers are beginning to win. Judging by the trading pattern forming, we are looking for a charge towards the upper trendline which should pose as the first strong resistance. A break of that level (currently $1.20), look for $1.25 followed by $1.30 and new all-time highs.

PENC stock price has broken above the upper symmetrical triangle trend line and could be headed for new highs.

A break above $1.19 will take PENC back to $1.25 followed by $1.30 and a new 52 week high above $1.40.