(Weekly chart) NYSE: CMG price action went through a series of flush downs into multiple support levels, where market makers likely cleared out stop-losses. At that zone, price formed a bullish engulfing pattern, signaling a potential attempt to rebound and regain momentum.
Price action highlights:
1) Flush down into the previous high level (resistance turned support).
2) Confluence with the 200 SMA on the weekly chart – a strong long-term support line.
3) Extension through the lower Bollinger Band, signaling short-term oversold.
4) Stochastic oversold, hinting at potential reversal.
5) Last week formed a strong bullish engulfing candle at supports.
This setup offers a favorable risk-reward profile — limited downside with strong upside potential.
Price action highlights:
1) Flush down into the previous high level (resistance turned support).
2) Confluence with the 200 SMA on the weekly chart – a strong long-term support line.
3) Extension through the lower Bollinger Band, signaling short-term oversold.
4) Stochastic oversold, hinting at potential reversal.
5) Last week formed a strong bullish engulfing candle at supports.
This setup offers a favorable risk-reward profile — limited downside with strong upside potential.
I follow price, not predictions.
Trends speak louder than opinions.
Follow me to stay updated with my latest trade setups.
Trends speak louder than opinions.
Follow me to stay updated with my latest trade setups.
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.
I follow price, not predictions.
Trends speak louder than opinions.
Follow me to stay updated with my latest trade setups.
Trends speak louder than opinions.
Follow me to stay updated with my latest trade setups.
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.