The 
CNP stock is in a confirmed and long-lasting up-trend. Last 5 months it has been consolidating right below its' ATH, creating a VCP pattern. So far two pullbacks, to 35.50$ and 37$ took place. The price it's approaching the resistance level, but there was still some selling pressure (high volume on 25.09). Thus I will monitor the stock closely in the coming days, as either the price will break through the resistance, or the selling pressure will lead to another higher low (this would break the trendline, but this would not invalidate the whole scenario for me - only a lower low would). Ideally, I would like to see at least 3 days of low-volume consolidation right before the resistance to place a stop-loss below. The target is estimated based on the breakout from an earlier, albeit much smaller contraction/consolidation pattern.
Trade
Entry: 39.50$
SL: 38.30$ or higher, depending whether a small consolidation forms before breakout
TP: 45.40$
Hope this scenario will play out within a week or two.
CNP stock is in a confirmed and long-lasting up-trend. Last 5 months it has been consolidating right below its' ATH, creating a VCP pattern. So far two pullbacks, to 35.50$ and 37$ took place. The price it's approaching the resistance level, but there was still some selling pressure (high volume on 25.09). Thus I will monitor the stock closely in the coming days, as either the price will break through the resistance, or the selling pressure will lead to another higher low (this would break the trendline, but this would not invalidate the whole scenario for me - only a lower low would). Ideally, I would like to see at least 3 days of low-volume consolidation right before the resistance to place a stop-loss below. The target is estimated based on the breakout from an earlier, albeit much smaller contraction/consolidation pattern.Trade
Entry: 39.50$
SL: 38.30$ or higher, depending whether a small consolidation forms before breakout
TP: 45.40$
Hope this scenario will play out within a week or two.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.