This set up looks a lot like a Cup and HandleTypically a cup and handle chart happens after a quick run up, with people taking profits and others assessing the stocks future capabilities to deliver additional returns. Ceragon has solid earnings, if the stock can gain momentum after the handle forms the potential exists for above average returns.
CRNT trade ideas
Cup and Handle on CRNTHere is what I believe is happening.
CRNT 0.00%is in a cup and handle pattern, with the initial handle under formation.
1. Its currently short term over sold
2. Initial Handle formation is in the process. It may be up to 30% of the cup and take support at 2.60.
3. Because of heavy bearish volume today and over the past few days, I believe further drop in price may be possible and the stock could find support at a around 2.5 - 2.56.
- cheers
Scorp
CRNT Swing TradeCRNT has shown a nice rally and is currently hovering below resistance at 3.00. The range from 3.00 to 3.20 is an area of low volume, and so a break above resistance could bring us to 3.20 and beyond. RSI has also cooled down, and the chart seems to suggest a reversal in place.
Waiting for volume to bring us above 3.
CRNT Reversal imminentJanuary spells reversal here. CRNT coming up on the floor of the major bull trend lines. This one repeatedly flags on all the trend lines and has reached the bottom of the trading channels. Worst case dips into the high $1.00's intra day prior to the new year, but Sub 1$ is behind it baring any bad news. Good PR takes us back to the 1.30's *Bull Channel" or better here.
CRNT CapitulationMajor Bull Trend line identified along with recent bear channel. Today's capitulation touched the Major bull trend line before regaining ground to bottom of the current bear channel. Apparent floors below for stops if you are nervous just above $1.10 and 1$. Trading within the blue triangle until the holiday, then a Christmas breakout of the current bear channel.