Fundamentally the report was still strong in our opinion, though it is difficult to believe that growth can continue at the recent pace due to a continued rise in food prices. The question is will CMG be able to pass those increases along to customers without a slowing of same store traffic?
From a technical standpoint we see nothing more dramatic than a normal retrace or pullback after a significant price target is reached. It is normally a healthy event in which profit taking is accompanied by a temporary sell-off back down to the next . This is exactly what has occurred. The question is, can the gap be negotiated or will it prove to be insurmountable at this time?
As is normal, once the 1st target was reached on the short side there has been some profit taking. Coupled with that is the re-entry of longs at the same level and this has created an updraft that has propelled price to the first short area.
The chart shows the working short as well as the working long setups on the LT time-frame. Usually our LT setups are shown on a Weekly chart but the Weekly doesn't show the recent gap down.
We have identified the first two aggressive short ranges and their respective 1st targets as well as the first target for the Intermediate Long.
Trade the chart and trade safe.
A "disagree" appeared re one of your posts and it was completely unintentional, must have been a mistaken click while we are becoming familiar with the site. I posted a question re it in the feedback section but have received no response.
If there is a way for us to remove it, we would certainly like to rectify the situation. Appreciate any assistance or advice you can offer.