CMG, MSFT update July 24

CMG: Has CMG bottomed? We think it has, but likely (only) for primary A of Cycle 2. Nonetheless we can still expect serious upside for Primary B, as it should target between $580-$620, possible up to $660. The daily chart shows we most likely had 5 waves down to the ~50% retrace of all of C1.

cmg

Price moved back above the white long term trend line (which is the same as the green trendline on the monthly chart below). We also note that the primary B target zone fits perfectly well with the monthly R1 and R2 levels ($528 and $614, respectively). In between we have the 100m SMA at $503, which appears a good first target (for major a). Note the + div on the monthly RSI5 (also on the weekly RSI5 -not shown here-); a none-ideal A.I. buy signal so far (all 3 TIs of the monthly A.I. moved up this month) and a deeply oversold MACD. Hence, risk:reward is good here. In addition, even if all of C2  bottomed (since we had a 50% retrace of C1; which is typical for a 2nd wave) we have an even better reward and much more upside of course. For now we remain realistic and cautious as to ensure profits: primary B targeting $520-$620.

cmg monthly

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MSFT: Did good on earnings and is about to break out of  year long trading range: $48-$56. Using a simple bull-flag pattern we see the flag poll was $9 to the lower end of the flag (or $17 in total) and if we add that to the upside break out then we get to $64. All TIs are pointing up suggesting further upside is likely. In between targets are the R1 and R2 levels ($59 and $61; respectively). Not shown here, but the weekly chart’s R1 and R2 at at $61 and $67; in line with the bull-flag analyses and in between targets from the daily chart.

msft