Hmmm.....Mean reversion investing strategy....For those who haven't heard about this strategy, its a hybrid of FA and TA diciplines...Mac's green arrow is the FA part, it nearly always made up with some sort of historical Earning results and the price chart and the equations involved with means is the chartists part.
Correct me if I'm wrong here MAC but I am under the impression that PEB has negative earnings and if plotted it would be under the date line and be a "W" trend shape. This would make PEB unable to be a candidate for Mean Reversion Analysis..
If your green arrow is something else .. using very basic knowledge (and I stand to be corrected again:))...it created a sell signal (at the same time as my posted chart) around early March when the +ve curve reversed and tracked towards the negative side so to correct the mean...Measuring the area above the curve and the area below the curve gives a predictive insight as to how far below the mean line PEB will fall before it reaches mean corrected (aprroaching zero) and begin to rise up again (assuming the green arrow has the same uptrend)...when the -ve curve reverses (below the mean line) it triggers a buy signal
Conclusion:..From sighting your chart MAC it seems it (theoretically) needs some time below the mean line to correct..but hey theory and practical never predictably agree ..eh?
Update to the NASDAQ to which PEB is responding to
The bad news is NASDAQ dropped another -1.34% on friday ..so monday's NZX may be another bad day for tech stocks...
The better news (maybe or maybe not) is the Close at 4000 is on a major bull/bear support...the good news is these major supports often end bull market corrections and it's all uphill again and the price jumps up off MAC's green line.....the bad news, if they break it could be a cyclic reversal to a bear market which could last for months.......If you are an optimist then no worries ..eh.
http://www.marketwatch.com/kaavio.We...579&mocktick=1