CMC trade ideas
$CMC coiled up with bullish accumulationBullish Base Breakout pending on hourly chart for this metals company.
PRICE ACTION/VSA LONG ON CMCLower low at C, then a higher high at A, then a climactic lower low at C finding support at prior support level. An AC (Accumulation Volume) VSA bar, which is a down bar with a mid to up close on high volume, indicating strength. First target is the previous higher high with a R:R of 1:3.12. Second target is a measured move of the trading range with a R:R of 1:8.56. However, could meet significant resistance at the two levels shown between the first and second target.
Pattern stays valid as long as the low of the bar is not violated or if it is violated the close stays above the support level prior to breaking the high of the signal bar.
Note my VSA terms are adaptations of the traditional VSA method described by Tom Williams and Gavin Holmes (which are based on the original works of Richard Wyckoff), so they don't necessary match their definitions.
Rejection at resistancePrice was rejected at resistance. With a bearish engulfing candle as a confirmation.
CMC PE is 30.57 while the overall sectors PE is 23.90.
Waiting for another point of entry.
