CMG and GMCR update

CMG: despite all the bad news about e-coli and food-poisoning, CMG had a very good week the past week. In fact it appears a lot of buyers stepped in at cricmgtical support (200w SMA: red line).

The weekly A.I. is close to a buy signal (all 3 lines need to move >20, hence the dotted line for this week), and price is moving off very oversold levels. Click chart to enlarge

Even if price is “only” going to bounce, we still expect upside to the weekly pivot or te 20w/50w SMAs: low to mid-$600s.

In addition, there is also a gap at $640 that begs to be filled first.

these levels also coincide with the 23.6% retrace (see blue Fib level in chart below)

If we add to the the wave count we’ve been tracking (see chart below), than CMG should now be in Primary V (as is the general market) and target, assuming V=I, low $900s. That’s almost a double from current levels. Hence, there’s good reason to believe CMG will only gain from here.

cmg1

 

GMCR: Popped tremendously on big buy out news this week. Although it dropped lower than we had anticipated ($45 vs $60), see here, we did anticipate this pop, just not to the 1-day, over-night, never-be-able-to-prepare-for-it, kinda pop…  We can observe that price is now right at the previous S/R level (white line)  and it needs to get over this level ($90) to gain more upside to the low $100 level. Con’t below chart.

gmcrThe weekly TI chart does show an A.I. buy signal 2 weeks ago, and serious positive divergences with all TIs, foretelling this big move. Now all weekly TIs are pointing up, wanting to see higher prices in the weeks ahead. However, a retest of the S1-level and the 50w SMA at $85-$83, possible $77 (where the 200d SMA is, as well as the 50% retrace; latter shown on chart above), may be needed first to burn off the very overbought levels on the daily price chart (not shown)

gmcr