Bearish potential detected for CWY

Entry conditions:
(i) lower share price for along with swing up of the DMI indicators and swing down of the RSI indicator, and
(ii) observation of market reaction at the support level at $2.55.

Stop loss for the trade would be:
(i) above the resistance level from the open of 7th January (i.e.: above $2.64).

Trade active

UPDATE (week ending 28-Feb): Trade activated on 28th February, with repeated respect of 10 day MA throughout the trading week. Daily charts suggest keeping protective stop tight as suggested in entry conditions above. Important to note that a dividend payment is due on 5th March, which would be payable by anyone shorting the stock.

Note

UPDATE (week ending 07-Mar): Downside action noted in the stock over the past trading week sees the share price close below 10 and 30 day MA's at the end of the trading week. However, caution is warranted for this 'short' trade since the RSI has now risen above the average (yellow) line, so a snap-back in price is possible. Charts suggest lowering protective stop to slightly above the recent support/resistance line of $2.58 from the open of 21st February.

Trade closed: stop reached

UPDATE (week ending 14-Mar): Stop triggered on 11th March at level described in last week's comment for effectively a scratch trade / good protection in choppy trade.

Ivory_Wolf

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Ivory_Wolf

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