I noticed with my scanners today that CMG is likely to break its daily ATR resistance line at the close (needs to close at or above $319.95). I took a closer look at the charts and decided to create an audio alert to notify me of when the R/S indicator from the 195 min chart breaks above its recent pivot high.
The daily chart shows how price has been in a relatively tight trading range as of late. The trend strength histogram has ground back from the “extreme” warning zone down into the “contraction” warning zone … an expansion phase can begin now at any time here soon.
Money flows have turned positive on the daily chart here as well.
CMG – Weekly Chart
The weekly chart is also showing signs of a possible first push higher on the daily chart … first bounces are typically met with some sellers who had come to regret holding the stock over the last move lower. They want out of the stock and really don’t care if price looks like it could beginning to trend in the opposite direction.
CMG – 195 Minute Chart
You can see how price failed earlier at its first attempt to break and hold above the prior pivot high … today’s price action looks like it is going to accept this “second” move higher. Like I mentioned earlier, I want to wait until the R/S prior pivot high is taken out before I look to positional trade CMG.
Cheers … Leaf_West