CSR could be a good long term trade

Probably not one for the wheelers and dealers on this site who love low value stocks.

CSR is a potential long term trade with a backtest showing the 5 positive and no losing trades from 2015 to the current date using a downtrend line break (or a higher low followed by a higher high in an uptrend) for an entry and a 10% stop loss or uptrend line break as an exit signal. I’ll have a video of this backtest shortly.

Based on the backtest entry rules CSR made a buy signal last week for an entry on the open of this coming week.

Elliott Wave count is unclear but I’m thinking the March low was the end of Wave 2, putting price on the start of Wave 3 which (if correct) is the best time in a price cycle to buy. Stock is in an uptrend because the March fall was too short in time to qualify as a formal downtrend so the previous uptrend remains in force. Price is also coming off a significant low (the blue dashed line on the chart) meaning the potential for a fall below that support is low. And, in our big drop on Friday, CSR was one of the few stocks to be in positive territory.

I can’t find too many reasons not to buy CSR next week.