Update Stock Watch – CG

In the earlier post, I highlighted CG for its possibility to break out of the ascending triangle. The stock did make an attempt to break out by gapping up in the opening on 15 Jun, but it failed. However, as of yesterday, the ascending triangle pattern seems still intact with 50 MA acting as a strong support.




Although in theory, ascending triangle pattern is generally expected to lead to a breakout / upward moves (i.e. continuation pattern of the existing trend, which is trending up), in reality we also saw that some of such pattern led to a breakdown instead, if the market fails to break the resistance at the upper triangle.

Anyway, as we know, everything is possible in the market. Even the best looking pattern may end up doing something the least we expect. We’re always playing probability games in market. So, the most important thing is always your risk & money management.

Let’s just see what the market will do with this stock. And always, do trade with care. :)