CINEPLEX INCShort
CGX (Cineplex Inc.) - Potential Pullback After Breaking Trendlin
On the 4-hour timeframe, CGX has recently broken below a key trendline that originated in late November, signaling potential weakness ahead. Here’s the detailed analysis:
1. Overbought Conditions: The RSI has climbed above 80, indicating overbought levels that often precede price corrections. This aligns with a bearish divergence seen in the MACD, which is starting to curve downward.
2. Support Target: If the pullback continues, I anticipate a move down to around $11.20, a level that aligns with prior support and Fibonacci retracement zones. This area could serve as a critical level to watch for potential reversal or consolidation.
3. Bearish Momentum: Moving averages on this timeframe are beginning to reflect weakening momentum, though the broader trend on the daily chart remains bullish.
Key Levels to Watch:
• Resistance: $12.00 (a failure to break below this might attract buyers early).
• Support: $11.20 (critical for confirming the pullback and setting the stage for a potential rebound).
Risk Factors:
While the technicals lean bearish short-term, a return of strong buying pressure or broader market positivity could invalidate the correction and see CGX resume its upward trajectory.
Let me know your thoughts—does $11.20 align with your analysis, or are you watching other levels?
1. Overbought Conditions: The RSI has climbed above 80, indicating overbought levels that often precede price corrections. This aligns with a bearish divergence seen in the MACD, which is starting to curve downward.
2. Support Target: If the pullback continues, I anticipate a move down to around $11.20, a level that aligns with prior support and Fibonacci retracement zones. This area could serve as a critical level to watch for potential reversal or consolidation.
3. Bearish Momentum: Moving averages on this timeframe are beginning to reflect weakening momentum, though the broader trend on the daily chart remains bullish.
Key Levels to Watch:
• Resistance: $12.00 (a failure to break below this might attract buyers early).
• Support: $11.20 (critical for confirming the pullback and setting the stage for a potential rebound).
Risk Factors:
While the technicals lean bearish short-term, a return of strong buying pressure or broader market positivity could invalidate the correction and see CGX resume its upward trajectory.
Let me know your thoughts—does $11.20 align with your analysis, or are you watching other levels?
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.