Multiple Bottoming Tails in the Buy Zone
Buy Setup (BS - at least 2 days
down), Bottoming Tails (BT),
and Bullish Changing of the Guard
(+COG), in the Buy Zone (BZ -
area between rising 20MA and 40MA, where 20MA is
above 40MA). CEG is in a powerful Stage 2 on the
daily chart, as shown by the series of higher
highs (HH) and higher lows (HL). It has sold off
for four days, before the bulls took over
control as shown by the +COG. Also interesting
are the three BT were all in the same general
area, showing demand underneath. Although not
shown, the hourly chart closed with a bullish
bar on increased volume (+Vol.), a bullish sign.
Finally, the BS and BT occurred in between the
rising 20MA and 40MA (BZ), where strong
snap-backs often happen.
chart courtesy of
Tip: A Buy Setup with
multiple Bottoming Tails, in the Buy Zone, is a
powerful combination suggesting a tradable
bounce over the +COG.
Buy over previous day's high, with a protective
stop under previous day's low.
NOTE: If some economic news, that can cause
additional volatility, are supposed to be out
that day, raise the stop to the 30-min. low
after the their announcement.
Target in the area of $30.
CEG rallied 5 trading days in
a row, surpassing the target.