CGNT Possible brakout formation
Over the past few months CGNT has exhibited a constant uptrend. Initially, it broke out of the original ascending triangle (Blue Lines) and ran for about 5 days until buyers locked in their profits and sold, causing a retest of the 13EMA. Moreover, the stock is riding the 13EMA upwards. I believe that the stock will reach resistance at (3.36) within the next few days (yellow lines). Also expect another re-test of the 13EMA if the market opens lower than the close as sellers would rather lock in some profits than stick around to find out what happens. Furthermore, I would not buy into the stock till the resistance level is reached as to eliminate the possibility of this being a false breakout.
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