CBI has been in a downtrend since mid-2014 but, with the overall bullish markets during that time, I was not looking for any shorting trades. However, this stock has trended quite well with only minor breaches of the 50ma.
Friday's bar confirmed an inverted cup and handle - unfortunately this formation was not very deep and the resulting measured move was almost completed on the one breakdown bar. There is also the issue of support from 2012 at $32.48 and, beyond this, the 30 round number.
While CBI appears to be in an established downtrend there are a few hurdles to jump before we can be confident it will continue. One for the watchlist.
Friday's bar confirmed an inverted cup and handle - unfortunately this formation was not very deep and the resulting measured move was almost completed on the one breakdown bar. There is also the issue of support from 2012 at $32.48 and, beyond this, the 30 round number.
While CBI appears to be in an established downtrend there are a few hurdles to jump before we can be confident it will continue. One for the watchlist.