Huhh... What a massive falling trend and what a reversal!
I have some personal involvment in this paper. I'm playing in my former company's soccer team and Cemex is one of our greatest opponent. Their team is much stronger than the chart below. :) Although even it improved a lot in the past days.
Let's see the chart!
In August and September (after 40% freefall!) it formed a descending triangle above 5. After breaking down from this bearish pattern, the freefall continued. A pretty bearish flag unfolded and the price halved again! On the day when S&P reached a broke down from its range and bounced back, CX also performed a definite reversal. In the first week of October it evolved a reveral pattern (spike). The top of its platform was slightly above 3.
This Wednesday the correction proceeded and CX rocketed almost 30% in 2 days. Yesterday it reached the first resistance: the top of the (filled) gap stopped the raise. At least for that session. In order to find a good setup, the volatility should decrease. If CX could form a consolidation range between 3.30 and 3.90 in the next days, than a break above 3.90 (4.0) would be a very good opportunity on the long side. Although we have to admit, that it must overcome several resistances.
The first is located at 4.50 where the 50-day moving average is found. Breaking above the MA would be a great success. In this case the bottom of the triangle around 4.90 and the top of the same pattern around 5.80 would be reachable.
As i mentioned above, 3.3-3.35 should hold the price. Below this level, the top of the spike's platform above 3.0 would be the last level, where holding the long positioned is acceptable. The fall of this support would be a perfect short-setup. The test of the local minimum deep in the abyss would be quite probable in this scenario.
I have some personal involvment in this paper. I'm playing in my former company's soccer team and Cemex is one of our greatest opponent. Their team is much stronger than the chart below. :) Although even it improved a lot in the past days.
Let's see the chart!
In August and September (after 40% freefall!) it formed a descending triangle above 5. After breaking down from this bearish pattern, the freefall continued. A pretty bearish flag unfolded and the price halved again! On the day when S&P reached a broke down from its range and bounced back, CX also performed a definite reversal. In the first week of October it evolved a reveral pattern (spike). The top of its platform was slightly above 3.
This Wednesday the correction proceeded and CX rocketed almost 30% in 2 days. Yesterday it reached the first resistance: the top of the (filled) gap stopped the raise. At least for that session. In order to find a good setup, the volatility should decrease. If CX could form a consolidation range between 3.30 and 3.90 in the next days, than a break above 3.90 (4.0) would be a very good opportunity on the long side. Although we have to admit, that it must overcome several resistances.
The first is located at 4.50 where the 50-day moving average is found. Breaking above the MA would be a great success. In this case the bottom of the triangle around 4.90 and the top of the same pattern around 5.80 would be reachable.
As i mentioned above, 3.3-3.35 should hold the price. Below this level, the top of the spike's platform above 3.0 would be the last level, where holding the long positioned is acceptable. The fall of this support would be a perfect short-setup. The test of the local minimum deep in the abyss would be quite probable in this scenario.
Indicators: we can see positive divergence both in case of MACD and RSI. These are bullish signals. The MACD-cross also supports a positive scenario. The volume yesterday and on Wednesday was extremely high. It means huge inflow to the stock. And since it appeared within the 4-9 period after the bottom, we can regard these days as real FT-days (follow through days). Until the price is above the bottom of Wednesday's candlestick, the stock is in long-mode.
Nincsenek megjegyzések:
Megjegyzés küldése