Looking at a head and shoulders pattern forming. After taking a beating due to oil prices, the stock is looking at a textbook head and shoulders pattern. Although oil fears continue, the stock has dropped so much over the past few weeks with zero recovery so far, it is worth the play.
I have provide few quick notes on the weekly chart of CPG. Notice the trend of the MACD and the moving averages beginning to move up. With inflation rapidly approaching and demand for oil still very much prevalent, even with all the electrification of society, it will still be a heavily demanded commodity. Solar and wind will not be able to provide all the energy we need.
Daily 9 on the TD Sequential. CPG has gone up exponentially so I am expecting a pullback at the very least the prior support level. A daily close above 5.6 would invalidate this trade idea.
If CPG can hold above the channel theres room to 6.50.
Quick refresher to previous ideas on CPG. Patience will pay off on this trade. Owning CPG is pretty safe right now after 90% drop from highs and consolidation/reversal pattern showing up at the bottom.
Hello Friends, This is complementary idea to long term CPG idea (linked). Yesterday, CPG has completed Reciprocal AB=CD pattern and produced a bullish daily candle. I believe that correction from $4.46 to $3.33 is over now and CPG is ready to rally to its next target at around $6.21. That would be a retest of once major support break. It also coincides with...
Key areas to focus for price rotation: Trade Talks with China Iranian Sanctions XLE - SPY correlation