(CERS) Bull Dunebug + Bull AB=CD Harmonic ComboI am long this stock since Dec. '23.
For the last 12 years CERS has behaved in a cyclical manner. I plotted multi-pivot and maximum excursion lines in solid and dashed yellow. These lines conservatively characterize the range's boundaries and reveal that it's expanding. The black 2.5 year down trend line has been violated and retested. I plotted a down sloping Schiff median line set and it's warning lines along with an up sloping Pendulum median line set.
Price has printed two large harmonic patterns; Bull Dunebug(distinct due to the use of 0.707 B point and 1.13 D point) whose CD leg is a Bull AB=CD. Pattern targets are plotted in dark green(high to low .236, .382 & .786 levels are dotted).
After giving a signal in mid '23, RSI and price printed a positive divergence. Note the action around the Schiff warning line and the retest of the lower maximum excursion line. Note the down trend line breakout and retest. Note the retest of the retest and how price is currently interacting with the up sloping Pendulum lower median line. The current weekly bar is showing great 'separation' from the lows of the median line test.
I believe that price is in a harmonic range. To me that means that the bullish patterns ought to work and that I should expect a bigger move than the standard harmonic model would suggest.
Buy a retest of the up sloping lower median line or buy at the market and trend follow with a 16 bar Donchian line. As it stands, I'm waiting for a momentum push(likely well above the .236 NHR level) and pullback to establish a new median line set. That notwithstanding, always be mindful of price action at the .236 retrace.
This one is for the patient believer. I hope this is, in any way, useful to someone. Best of luck to the longs!
