Filed Under: ,
Tickers in this Article:
On Oct 3 we mentioned that CDI was traveling within an ascending channel and that we'd expect it to drift lower if it closed below the combined support of the 15 DMA and the bottom trendline. On Oct 5 CDI did close below the mentioned support and since then it has spent most of the time in an short-term downtrend. As you can see from the chart below, the 100 DMA was able to act as a level of support, which we'd expect to happen again when CDI heads back downward.

We've added the On Balance Volume indicator, which has spiked upward since CDI bounced off the support of the 100 DMA. This increase in volume could be used as an early signal that buyers are starting to step in. CDI is currently testing the resistance of its 52-week high near $30. This level should act as strong support once the bulls push the price above the resistance.

comments powered by Disqus
Trading Center