This chart of CRME looks fairly good. It’s a bit messy , and that’s how it goes with pharma companies, but i do think there are some tasty nuggets hidden in here.
The RSI has been trending upwards since February and will probably come down a bit to tag the trend line.
Looking @ the chart itself there are a few pretty things here. Mainly the $10 mark. Lets start with 2 steps back and look @ the weekly chart. (I should have annotated a chart for the weekly, but unfortunately i did not.) The $10 mark is definitely a resistance level on a weekly basis and has been tagged a few times recently.
Take a step in and check out the chart image in this post; this is 10 months and that same cupish shape is still prominent with it’s left most cup lip and “handle” tagging $10 bucks three times.
The “handle” area that started in early May to now is what i am interested in. I feel that if we can push through the $10 mark on good volume and market conditions, this could be full of win.
A few other quick key items of interest in the chart is the EMA cross which happened late March and the fact that the price has been bouncing on the 20 day EMA pretty consistently. The 20 day EMA could be looked at as a support line and possibly used as an exit opportunity if breached.
One last thing about this chart is that the most recent day was down and on very low volume. To paint a more clear picture, the markets in general were down A LOT as the emergence of new that oil jumped $10 bucks in 1 day and unemployment numbers increased from last month. Point is, Friday’s close down might be more impacted by the overall market forces than one may expect.
Finally, MACD and STO are looking OK. Just OK because they are a little high for me but they are in a bullish setup.
- Buy on cross through $10.00
- Semi-tight stop loss, maybe 2-3% as there are pretty big moves in price throughout the days.
- First resistance @ $10.50
- Next resistance level @ $11.23ish