Today’s trade idea has been in a brutal downtrend since late 2014 as shares have dropped 67% since that time. That being said, share price stabilization has been occurring since October 2015 with shares essentially trading in a side ways channel formation looking for their next trend direction. We believe that next move will be to the upside, which is why we are highlighting the stock today.
Currently, the top boundary of the channel pattern (resistance) is found around the $7.00 - $7.50 level while the lower boundary (support) sits at $4.75 - $5.00. With selling pressure drying up and most technical indicators showing bullish signals, we believe a move to break out of the $7.50 level could be coming soon, and if it does, prices could rise substantially. As mentioned, bottom support would be found at $4.75 - $5.00, however there is also near term support at $5.80 - $5.90. As for resistance, the above mentioned $7.00 - $7.50 is critical resistance to break. Above that, we would be watching the $9.50 level followed by $10.25 and $12.50.
While we normally would wait for the key resistance level to be broken before we enter a long position, in this case waiting to break resistance would mean giving up too much gains. We believe that ultimately the resistance will get taken out, even if it doesn’t necessarily happen on the next try. As such, we would enter the stock on strength. Upon a successful entry, we would place a price target of $9.25 and a stop loss level at $5.70 limiting our downside risk. Based on today’s trading, our upside potential looks to be 44.3% while our downside risk is 11.1%.
The stock price direction for the day for CPH:CA is DOWN. This stock is currently not trending in any direction or the stock may be fluctuating over the last 5 to 7 days, but after all the fluctuations, finds itself in roughly the same price point as it did when BullishInvestor.com started analyzing it 7 days earlier. As a result, the trend for this stock is too weak to properly analyze at this time. That being said, short spurts of share price increases or decreases can still occur even though a trend has not been properly analyzed which is why watching the BullishInvestor.com daily ratings may be able to pinpoint quick entry and exit levels in this stock. Based on BullishInvestor.com’s proprietary algorithms, CPH:CA is currently signalling NEUTRAL.
The most recent Candle Stick pattern for CPH:CA is the Three Outside Up/Down.
There are two possible reasons for the Hold rating currently given to CPH:CA. The first reason is that there may be indecision among the technical indicators or most of them may be neutral for CPH:CA. If the stock chart looks flat lined or is in the midst of a trend direction change, most likely this is why CPH:CA is showing Neutral. If, however the stock is currently in a visible up or down trend, the reason for the Hold may be because the BULLISH or BEARISH rating has already passed.
The last SELL was registered on Mar 11, 2024 when CPH:CA was trading at $7.1. Armed with this knowledge, there may still be some more strength left in this current trend or it may be near a tipping point, the market has not given a clear indication yet.
As such, it may be a wise decision to hold your stock or continue to wait on the sidelines in CPH:CA until BullishInvestor.com changes the rating for CPH:CA.