littleriver

CWCO DOUBLE BOTTOM CONFIRMED BUT DONT DRINK THE WATER YET!

NASDAQ:CWCO   Consolidated Water Co. Ltd
1
With the double bottom confirmed, I would like to explore the possibility of a 2618 trade. Price is approaching the projected target of 13.00. Here, I expect a pullback in price to begin. Should that happen, we may then look for a long entry near the .618 Fib Ret. level. The idea behind a 2618 trade , as I understand it, is to reduce one's risk when entering a trade. Risk is reduced by the fact that you are waiting to enter at a level closer to the double bottom and the double bottom is already confirmed. I prefer this setup with the trend but it is truly a reversal setup. I believe this chart offers a good look at one, as this double bottom could lead nicely into an IHS to complete the reversal in trend. The two green lines are targets, the red line is the stop and I have added a pitchfork to give the chart a sense of time.