CMG Breakdown Update… nearing short term support?
A month or two ago, I noted a breakdown in CMG from a 6 year old rising (bearish) wedge. The last couple days have seen the breakdown accelerate… right into support. In the longer term, I view the drop as validation that there is likely a good deal more downside to come. However, in the shorter term, CMG would seem due for a bounce off support. It is nearly upon both its 200 day moving average and the bottom of a rising channel that has been in place over the last 2 or so years. You could even draw a trendline through the repeat top of late 2011 and it extends to the same $370 area. It would appear to be a likely place for bulls to make a big stand.
Here’s the shorter term view, as I see it: