15-Feb-2024 : Keeping it Simple with Price Action & Technical...

15-Feb-2024 : Keeping it Simple with Price Action & Technical Analysis.

The chart of CGF looks interesting in current price action..
Lets look at the Weekly chart and see the possibilities that may lie ahead..

1. Since the sharp correction in Feb'20 COVID era, the stock has been in a steady consolidation mode.
It may look like it's not going anywhere, but when you look at the steady rising lows, and most importantly RSI not going below 30 in the oversold zone, you know it's a stock that may just be biding its time.

2. The 0.38 Fib Level has been good support at 5.85, and if we see the stock at that price-point and RSI, we can see a positive divergence in RSI as well. That's usually a good sign for a trend reversal.

3. The stock price is now at the mid 0.5 Fib level since the last correction, and now it all depends on how it behaves as it inches closer to that immediate resistance at 7.6. As I have marked, it has tested and failed twice at that point.
Will it be a 3rd time lucky for CGF ??

Keep a watch, and we may know soon. Good Luck.