An intraday high potential, Back Tested Sort Analysis.
We ll try to enter into the correction of the uptrend movement.
DETAILS ON THE CHART
NOTE: Entry range area above the entry point, is calculated upon 80% of the recorded pullback back tested past performances
DISCLAIMER: This is a technical analysis study, not an advice or recommendation to invest money on.
The trade is in the direction of the current trend: descending impulse with symmetrical triangle. Nice candle signal supported with the real resistance triangle line & hidden resistance at 61.80%. Nice bearish candles: the shooting star, dodji & kicker.
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Several reasons to be bearish $CVA from a technical standpoint
1) Trading right on trendline, 50 day and 200 day moving average resistance
2) Not oversold, so timing for a short is suitable
3) ADX has gone flat after being extremely bearish, but may continue and has not fallen yet.
4) MACD has already crossed so the bounce to the upside is already mature.
CVA has just printed a bullish flag in an uptrend (on Thursday's bar). This gives a good indication that price will continue to rise (no chart pattern has 100% accuracy).
However, there is not so much room for this stock to uptrend before hitting resistance at around $30 (the 2008 high was $30.37). Some breakout traders prefer to only buy those stocks which are...