Update: CMG Disaster Sell-Signal

• Posted by Robert Sinn
• on June 28th, 2012

As I pointed out yesterday $CMG closed on the edge of a very steep cliff with few viable reference points below – today was a follow through selling day as one would have expected, particularly in a weak overall tape. However, CMG traders now have some better reference points to utilize going forward:

Click to enlarge (notes on charts)

Despite a strong surge by equities into the close CMG was unable to get above 379, this will likely be an important level over the coming days – while a rally back up above 380 would certainly not be unexpected, a retest of today’s low at some point over the next couple of weeks would be typical of a badly damaged chart such as CMG:

 

 

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