CBL parallel channel, double bottom, short squeeze possibility
CBL and Associates Properties, Inc. has been in a long-term downtrend, and I don't think I'd want to own this stock long-term. Analysts are fairly bearish, and the stock has a history of missing earnings estimates.
For the last month, however, it's been in an uptrend. It broke a downward trendline, and most recently it's formed what looks like a double bottom. Short interest is high, setting up the potential for a short squeeze. That tells me this could see channel top again in the relatively near future at 1.29 or above.
There's support at 1.02, so that's a good price to buy with stop limit at 1.01. Alternatively, you could hold out for a purchase closer to channel bottom with below-channel stops.
As always, this is simply an idea as to how the market will move, not investment advice.
For the last month, however, it's been in an uptrend. It broke a downward trendline, and most recently it's formed what looks like a double bottom. Short interest is high, setting up the potential for a short squeeze. That tells me this could see channel top again in the relatively near future at 1.29 or above.
There's support at 1.02, so that's a good price to buy with stop limit at 1.01. Alternatively, you could hold out for a purchase closer to channel bottom with below-channel stops.
As always, this is simply an idea as to how the market will move, not investment advice.
Comment:
Here's the trendline break:
