CBI, VRX updates 03/06

CBI: Getting lots of call buying lately and the daily chart shows it is holding its 200d SMA nice. But currently stuck below its 50d SMA, which it needs to retake to get more upside going. But the TIs are pointing back up, A.I. is on a buy, MACD holding its uptrend line, and the OBV indicator keeps rising longer term (higher highs, higher lows). All are good signs. As long as the 200d SMA holds, the trend is up.

cbi daily

The monthly chart shows the big picture count for CBI, and although price is technically still in what looks best as an ending diagonal triangle (EDT, red arrows), a break over the upper line will mean the down trend is over and price than often moves back to the start of the EDT: $60. Note the picture-perfect 50% retrace of A, by B 🙂 That’s how we like B-waves 🙂 The monthly MACD, A.I. and RSI5 are pointing up and on buy. This longer term things are starting to look good as well. Now also the monthly OBV needs to turn back up to tell us money is flowing back into the stock for the long-term, as the daily OBV is showing.

CBI monthly


VRX: Two lines of thought/possibilites. The bullish one is shown in the weekly chart. The price action can be counted as a set of 1st and 2nd waves, with intermediate-ii about complete at the 76.4% retrace. A break below $14 will put this count in serious jeopardy, so if you like buying lows, than one could enter a long position now, and set a stop at $14. But, all weekly systems are still on a sell, and it would not be unwise to wait until these turn back up. One can make a case for either, hence the aggressive investors among us could do the former, whereas others may want to wait till then.

vrx weekly

The count on the daily chart has the whole advance off the May 2017 low as a simple a, b, c wave up, and price should eventually break below $14 as well as below $8.50. Here we can clearly see the lower (green) support zone, and as long as it holds price can move higher back to $17-$18 the prior S/R zone, which price broke down through. IF price can get back above $18, that would be a nice first indication of good things to come (impulse waves). Thus this is why the suggested trade set up was mentioned earlier. There’s still an inherent and large risk of price losing another 50%… Thus stops need to be kept tight if one feels so desired to try to bottom trawl.