Anticipated breakout to Stage 2 from
Anticipated breakout to Stage 2
from Major Support (MS). CIN has been trying to
bottom for a month and, in the process, has
built a base of MS. There is also some
interesting bar-by-bar analysis that suggests
that a bullish move might be at hand. On Aug.
22nd, at the most bearish time of the day, it
was a very bearish 10/10 bar; however, it did
not take out a prior low, and closed well off
the low, leaving a Bottoming Tail (BT). Then 3
days later, it gapped down, creating a minor
bearish mortgage play, but had no downside
follow through and closed very bullish with a
wide range body. The gap down also was a higher
low than the mentioned BT candle. Then, CIN
consolidated for two additional days in the
upper part of the week's range, above its 20MA.
These are all signs that buyers are stepping up
to support the stock at these levels.
Additionally, although not shown, the weekly
chart is also on MS, threatening a similar break
to Stage 2. There is little supply to halt a
chart courtesy of
Tip: Simultaneous breaks
to Stage 2 out of bases on both the daily and
weekly chart have higher odds of follow through.
Buy above previous day's high ($34.32) with a
protective stop under previous day's low.
A move of $1.25 to $1.75.
LOW TO MEDIUM RISK
CIN traded well, and reached
a high gain of $1.27 yesterday, meeting the
minimum target. Trail stop to prior day's low.