CCJ - possible stage 4 incoming
Updated
Dear all,
Another name that is probably setting up for stage 4 in the energy sector, this time a uranium name: CCJ.
After consolidating a stage 3 for almost a year and forming, kind of a sloping head and shoulder pattern and loss of the longer term trendline this week, it is time for a stage 4 decline.
Things to consider for a stage 4:
- declining 30 week Ma :check
- declining 10 week Ma :check
- 10 w underneath 30w :check
- Loss of trendline :check
Extra reasons for stage 4 decline:
- Big volume on down days :check
- Gap downs
- Resistance of AVWAP of important dates (big volume days 1 feb 21, last high and low)
The price is now trying to reach back the broken trendline, but is unable to break through. The trendline is now also confluencing with an AVWAP. Next week the 10w sma is at the same spot and also the downtrending trendline from last high. This will be a very tough spot to break, so a high probability the price will move downwards.
I entered last week with a few puts, three months out. Stop loss i would suggest is the break of before mentioned resistances ca. 23-23,5
Good luck and have a good year!
Another name that is probably setting up for stage 4 in the energy sector, this time a uranium name: CCJ.
After consolidating a stage 3 for almost a year and forming, kind of a sloping head and shoulder pattern and loss of the longer term trendline this week, it is time for a stage 4 decline.
Things to consider for a stage 4:
- declining 30 week Ma :check
- declining 10 week Ma :check
- 10 w underneath 30w :check
- Loss of trendline :check
Extra reasons for stage 4 decline:
- Big volume on down days :check
- Gap downs
- Resistance of AVWAP of important dates (big volume days 1 feb 21, last high and low)
The price is now trying to reach back the broken trendline, but is unable to break through. The trendline is now also confluencing with an AVWAP. Next week the 10w sma is at the same spot and also the downtrending trendline from last high. This will be a very tough spot to break, so a high probability the price will move downwards.
I entered last week with a few puts, three months out. Stop loss i would suggest is the break of before mentioned resistances ca. 23-23,5
Good luck and have a good year!
Trade active
Although a BO occured, price got stuck around the 23,10 level (contained by daily AVWAP and 10wma).But less comfortable with the trade and will manually close when the high of yesterday (23,24) is breached.
Weak marker conditions are playing in our favor luckily.
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