possibile outcomes in cycle analysis for cvi.

Here's an updated chart showing the long term cycle ( green highlighter line ) to be up, and the short term cycle (red highlighter line ) to be bottoming as of now. Traditionally, prices starts to firm when the short term cycle has bottomed and moves together in synchronity upwards with the longer term cycle.

Pink price channel= Short term price cycle
Green price channel=Long term price cycle

It is possible that a short term cycle bottom has been reached when the price of CVI touched the lower boundary of the curvilinear channel of the longer term cycle ( green channel) on the 13th June - of course that is not embedded in stone yet - rather we have entered into an edge band trading situation where prices are low and risk are lower.

Yesterday, CVI cleared the minor trading channel marked by support CD and resistance AB, but still within the edge band location. Today, the support line is marked by the pink line 3-4 ( need to stay above 0.145for prices to stay constructive ) and resistance at the upper pink line 1-2 ( ie above 0.16 to rally). Failure to stay above 0.145 means it is back into the edge band, and more watching and waiting, with the possibility of the shorter term pink channel to overlap the long term green channel to form a lower edge band timing transaction opportunity.

Hope this chart is of help to some of us wanting a technical picture.



I am NOT an investment advisor and this chart is not an inducement to trade in this stock or any stock for that matter. This chart is NOT advice to buy or sell, and is merely represents a technical picture of the stock and is NOT suitable for you to act on for any trade. Please consult your registered and licensed broker or investment advisor if you wish to trade.