Here is a trade I’m keeping on my radar. Above is a monthly chart of CGEM, and the first thing I want to highlight is the long-term support level that price is currently bouncing off of. This level has been in play for months and the market respected it once again. The month of October confirmed the strength of this support by forming a bullish outside bar on record monthly volume. Any time I see expanding volume at a major level, I pay attention.
In November, we saw some encouraging follow-through as buyers continued to defend that level. When I shift my focus to the daily chart on the right, I can see we’ve transitioned into a period of consolidation. This type of structure often shows up before a potential expansion move, and it tells me that traders are in a holding pattern, waiting for new information or a catalyst before committing in either direction.
What stands out today is the volume. It was the heaviest we’ve seen since the stock made its high two weeks ago. When volume begins to increase inside a consolidation zone, I start preparing for the possibility of a breakout.
For me, the key level is the 13.33 high. A decisive push above that area, especially if the volume confirms the move, would be enough to get my attention. Until then, I’m watching closely, letting the market show its hand. Keep CGEM on your radar, this setup could get interesting as things unfold.
No comments:
Post a Comment