CBS - At The Bottom of 5 Year Broadening Formation

Nov 7, 2019

Very large broadening formation formed on the monthly dating back to 2013.
Current R:R ratio with a stop under the previous month low and a reward to the top of the broadening formation is 9:1.
Smart move would be to wait until previous month high is breached and get a confirmation close 3day at least and gauge risk from there.
But something tells me that a strong gap up won't give you that opportunity.
The risk of taking a small starter position here with strong closes is worth a look.
Beware: earnings next week...

Dec 2, 2019

Note

On the radar:
Strong buy entry above $40.76 when it takes the month up, with the near term target of stopping out the shorts sitting above the October high $41.09.
This should add enough fuel to attempt to squeeze out any remaining stops placed above the Dec 2018 lows of $41.38.
A daily close above $41.38 is very strong.
Near term target would then be $46.42, the 2019 Q2 lows.
Mid term target $53.72, expanding the previous quarter to the upside.
Long term target $70.10+ into new all-time highs.

Initial entry: $40.76
Stop: $39.72
Target 1: $46.42 (r:r 5.51)
Target 2: $53.72 (r:r 12.59)
Target 3: 70.10 (r:r 28.5)

Dec 4, 2019

Note

On the radar..
All hands man your battle stations.
$40.76 potentially incoming, stop revised to $39.59.
Risk of 2.87%, manage your position size accordingly.

Dec 4, 2019

Trade active

Buy engaged at $40.76.
Stop at $39.59.
Target 1: $46.42 (r:r 4.84)
Target 2: $53.72 (r:r 11.08)
Target 3: 70.10 (r:r 25.08)

Dec 4, 2019

Note

Full time frame continuity to the upside. Add on every hourly new high, move stop under the hourly low.

Dec 6, 2019

Note

A little late on this but the CBS / Viacom merger creates ticker VIAC.
I was stopped out at $37.37, nearly the low for the day, but re-entered at $39.84.
If stopped out again on the days low will just have to re-evaluate next week.
I'm not sure what the price action will hold post merger so will probably move on to something else.