Requested Chart Analysis for Cost Plus, Inc. (CPWM).
Cost Plus, Inc. (CPWM)
A/D line: Strong uptrend since early August
ADX line: Buy signal on Sept 1st but trend is not strong
MACD: Bullish but starting to level off and pullback
CMF (21): Positive, .5 and over would be very bullish
OBV: Confirmed all moves in the PPS, normal
RSI: Strong uptrend nearing overbought territory
Resistance:
$4.07 (May 26th support broke and turned into resistance)
$4.07 (100-day Simple Moving Average)
Support:
$3.65 (Sept 15th)
$3.44 (50-day SMA)
Technical Analysis: Great uptrending stock but volume is starting to pullback. Obviously as the stock price goes up, volume will go down but this is pulling back a bit quick as the bulls are most likely becoming leary of jumping in a stock that has appreciated so much. The good news is we’ve had 5 straight green days but to keep things healthy, a low volume pullback that stays well above $3.65 would be healthy for the chart and keep CPWM making higher-lows, which is bullish. I’d expect some profit takers to come in and reduce their positions to ensure guaranteed profits and some will wait until breaking the 100-day SMA / the May 26th support turned resistance level before committing more capital.
Look for a low volume pullback before the 100-day SMA which, could be a good entry point. The other option is to look to see if the resistance at $4.07 is broken on strong volume which, should give confidence that the uptrend is still intact.
For requested chart analysis, I simply use technical analysis. I do not combine my analysis with any fundamental view or specific due diligence on the company when building my analysis. Make sure you include all relevant information when making a decision.
Good luck out there,
Mike
At the time of publication, Kudrna has no position in the mentioned stock.
