CCU trade ideas
CCU, Dead Cat Bounce (bearish) I found this pattern at tickeron website with the following data:
STATUS = Confirmed
CURRENT CONFIDENCE = 70%
TARGET (EXIT) PRICE = 12.38 USD
BREAKOUT (ENTRY) PRICE = 12.66 USD
DISTANCE TO TARGET PRICE = 0.64%
EMERGED ON = Oct 02, 12:00 PM (EDT)
CONFIRMED ON = Oct 02, 02:55 PM (EDT)
WITH CONFIDENCE LEVEL = 73%
The Dead Cat Bounce pattern appears when a security's price falls quickly but has a temporary “v-shaped” recovery before resuming its downward trend. The temporary bounce (from point 2 to point 3) may be explained by shorters covering their positions or buying by investors who think the price has already reached a low point.
It is important to wait for the confirmation move, which is when the price breaks below the low where the dead cat bounce occurred (point 2).
Trade idea
If the price breaks out below the price where the dead cat bounce occurs, then day traders and swing traders should trade with a DOWN trend. Consider selling the security short or buying a put option at the downward breakout price level. To identify an exit, compute the pattern’s height by measuring the initial fall (from points 1 to 2). Then calculate the target price by subtracting the pattern height from the breakout price level. When trading, wait for the confirmation move prices falling below the breakout level.
To limit potential loss when price suddenly goes in the wrong direction, consider placing a stop order to buy back a short position or sell a put option at or above the breakout price.
CCU shortbroke below july 16th low with momentum. RSI shows trend down still in tack. Target is low set on june 30th, SL set at July 16th low.
Compañía Cervecerías Unidas. S.A.Chilean Stocks.
Pure Technical Projection.
Bearish Gartley + iH&S could give the last correction before break the bullish megaphone and keep rising.
Divergence both MACD and RSI.
Ichimoku will lead us.
Simple Long Set-up $CCUFairly straight forward setup. Narrow range plus the 50-day MA coming up to add support to the rising red trend line. 48M float. Insiders own 62% of shares. I would be looking for at least $28.00 after the breakout.
