CMG daily chart to go with my monthly analysis. Looks like were heading for the .786 retracement instead of the 0.618. The Bearish crab completes around $398, but it will probably go to a solid $400. The pattern is perfect due to where it is. It coincides with the .786 retracement from it's decline at the $440 level, which is a perfect (aside from .618) bearish...
Kissed 0.618 3 times in a perfect bearish retracement. We either have a bullish AB=CD pattern or a bullish bat. Given that the the 2.0 and 0.886 extensions are so close together in the PRZ it is possible that we tag this area. If not then I guess its a AB=CD. As far as volume analysis goes; first notice the downward sloping volume since the start of the 0.618...
I believe this is just a rally back into resistance here on May 22, 2012 at 404.48 +11.15 or 2.83%.
I will wait until tomorrow to short and I will look for a 410-415 IDEAL ENTRY LEVEL and will look for a 384-380 target.
My stop will be 425-430.
Just giving a heads up early.
Cheers.
