From its lows in July, PNA appears to be attempting a 5 wave rally. At the moment it is in its 4th wave. We can be confident about this because usually the 3rd wave is the strongest, which appears to be true. Also, the rule of alternation states that if the 2nd wave is simple (which it is), then the 4th wave would be complex. And so far this is also the case. By definition it needs to not go lower than the second wave which is indicated by the solid horizontal line. So the lowest point we want to see PNA head back to is the solid line. On the upside, it has potential to rally to the $2.60 resistance level. This enables traders to clearly calculate their risk/reward.