Diamond Breakout

٨ أكتوبر ٢٠١٩Here's a rather rare find. There's another spot for a 'weekly' candle within the diamond, and on the next one we should know for certain in which direction it'll go. Diamonds tend to 'reverse' more often than they do an upward 'continuance'. In CMG's case the candles reach higher at the top but close lower, thereby suggesting a downward bias. In addition, the main (middle) candle, also called "stem" is negative, which also has a bearish bias. Last but not least, the 'weekly' PSAR break makes this even worse. Diamonds always breakout with high volume, which makes this ideal for options trading either way. This is likely to drop towards 720-730 on earnings release.

Watch how the next CMG charts will copy this ;)
Cheers

١٤ أكتوبر ٢٠١٩

تعليق

Bull if stock breaks above 857.90, bear if stock breaks below 796.90