Via my research, I've maintained two views on CLS:
1. The medium term ascending triangle is positive and could see higher levels being tested (possibility of 31300c/32200c), however
2. In recent days (the ultra short term), the price appears to be extended well above it's mean, with the technical indicators suggesting the price in overbought territory and, with the reward-to-risk starting to appear attractive for an ultra short term retracement.
Technically, the drivers for a short term pullback are as follows:
- Price extended outside of it's 200-period Linear Regression Channel
- Price overextended vs both 20-EMA and 50-EMA
- 7-RSI RSI at 94; 14-RSI at 85 - both in overbought territory
- Considering the Bollinger Band indicator (not visible), we note the price trading well above it's mean.
On this basis, we consider a sell/short, with the following levels:
Sell/Short at current levels 29533c, or higher
Stop-loss: 30315c
Target: 28200c
Links to recent short term and medium view are attached.
1. The medium term ascending triangle is positive and could see higher levels being tested (possibility of 31300c/32200c), however
2. In recent days (the ultra short term), the price appears to be extended well above it's mean, with the technical indicators suggesting the price in overbought territory and, with the reward-to-risk starting to appear attractive for an ultra short term retracement.
Technically, the drivers for a short term pullback are as follows:
- Price extended outside of it's 200-period Linear Regression Channel
- Price overextended vs both 20-EMA and 50-EMA
- 7-RSI RSI at 94; 14-RSI at 85 - both in overbought territory
- Considering the Bollinger Band indicator (not visible), we note the price trading well above it's mean.
On this basis, we consider a sell/short, with the following levels:
Sell/Short at current levels 29533c, or higher
Stop-loss: 30315c
Target: 28200c
Links to recent short term and medium view are attached.
