CODX has been trading in a wedge since the top marked about 1.5 years ago. Last week's blowout earnings should act as a proper catalyst for this name to find its' way to the next liquidity zone, which is around 12-15$. A small gap can be found on lower timeframes around 10.40-10.50, which would be the first target for those looking for a more cautious play.
Whether the catalyst will be enough to break the wedge for a much larger move remains to be seen. This is not far fetched in my opinion, as cases are picking up again and countries reimplementing lockdowns, the illusion of going back to normal is waning.
The play is valid as long as we don't close back inside the liquidity zone where we left.
Whether the catalyst will be enough to break the wedge for a much larger move remains to be seen. This is not far fetched in my opinion, as cases are picking up again and countries reimplementing lockdowns, the illusion of going back to normal is waning.
The play is valid as long as we don't close back inside the liquidity zone where we left.