Current Setup:
Bullish Case:
Bearish Case:
Risk/Reward View:
Takeaway:
CMG is at a do-or-die level around $40. Holding this zone offers a bounce opportunity, but momentum remains bearish. Breakdown would confirm further downside.
- Price is trending inside a clear descending channel, with lower highs and lower lows since the $69 peak.
- It’s now sitting right at a critical support band around $40–41, aligned with the lower channel boundary.
- RSI is near 40, showing weakness but not oversold.
- PMO (top grid) is negative and declining = bearish momentum.
Bullish Case:
- If $40 holds, CMG could bounce within the channel, with resistance levels at $45–48 and then $52–55.
- A decisive breakout above the descending channel (~$56–58) would be needed to flip the bigger picture bullish.
Bearish Case:
- A breakdown below $40 would be a big technical negative, likely exposing $36 → $32 → $27 levels.
- Given weak momentum and repeated failures at resistance, downside risk remains significant.
Risk/Reward View:
- Reward: Bounce from $40 support could give a 15–20% upside if channel resistance is tested.
- Risk: Breakdown below $40 risks a steep drop toward $32 or lower = poor reward/risk for early longs.
Takeaway:
CMG is at a do-or-die level around $40. Holding this zone offers a bounce opportunity, but momentum remains bearish. Breakdown would confirm further downside.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.