CRNT hit the textbook 50% fib retracement buy zone. Because it is a pretty volatile stock, I like to use the 78.6% retracement as the stop loss to give the trade more room to be right. That would mean putting on a smaller position to take on the added risk from a wider stop.
NOTE: Earnings are soon, so be careful if you are going to take this setup
- Stock is at 50% retracement support area
- 20 day EMA could act as support
- On the monthly chart, the 200 month SMA has acted as a large resistance zone, so that is one bearish factor to be aware of. If the stock can get above that and close above it, that would be extremely bullish for a larger continuation of this reversal.
Trade
- Buy around $4.50
- PT1: $7.50
- PT2: $8.50
Stop loss: $2.99
NOTE: Earnings are soon, so be careful if you are going to take this setup
- Stock is at 50% retracement support area
- 20 day EMA could act as support
- On the monthly chart, the 200 month SMA has acted as a large resistance zone, so that is one bearish factor to be aware of. If the stock can get above that and close above it, that would be extremely bullish for a larger continuation of this reversal.
Trade
- Buy around $4.50
- PT1: $7.50
- PT2: $8.50
Stop loss: $2.99
Trade closed: stop reached