Long CNSL, Entry: 8.96, Target: 9.89, Stop: 8.70, Risk/Rew.: 3.6
$CNSL fell sharply after its new high in May, but it found support just above the rising trendline. It then retraced back up to the 62% Fibonacci level, trade back down to the 38% level and today it is breaking above the falling trendline after a bullish Engulfing pattern yesterday.
I think that a test of the previous high of 9.89 is possible with a bit of volume. Also, is we consider this to be a swing low we could be in for a move up towards 10.50, but that is for later. For now, I see the following trade.
With and entry at the price 8.96 (price at the time of writing), target of 9.89 at the previous high and a stop at 8.70 whish is just below the falling trendline, we have a risk/return ration of 3.6.
I think that a test of the previous high of 9.89 is possible with a bit of volume. Also, is we consider this to be a swing low we could be in for a move up towards 10.50, but that is for later. For now, I see the following trade.
With and entry at the price 8.96 (price at the time of writing), target of 9.89 at the previous high and a stop at 8.70 whish is just below the falling trendline, we have a risk/return ration of 3.6.