Sunday, October 18, 2009

Chart review: CCB

Weekly:



CCB on the weekly is a picture of bullishness. Upon close examination however, the "back of the bull" was actually broken, two weeks back with the long blue bar. Prices rallied again, breaking the $6.33 price point while leaving a much more shallow histogram behind. My read is that CCB should have one more leg up before the divergence kick in on the weekly.


Daily:


I have just completed my second round of trading with CCB (+6.6%, +8.1%). As I believe that there is one more leg up, I intend to re-purchase at just below the value zone because looking at previous pullback, the value zone is consistently pierced intra-day. The lower band of the value zone (22-day EMA) is $6.43 so the price point that you could consider re-entering is about $6.40. Get in, ride the last leg and get out.


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