Last week, I had posted about CAGC potential rally if S&P 500 fails to break its major support at 1040. Sure enough, S&P 500 never broke its support and we experienced a strong rally in CAGC,
breaking the downward triangle pattern. In looking at a three months chart we see that once it clearly broke its downward resistance level, CAGC took off quickly and closed 10% higher for the day.
breaking the downward triangle pattern. In looking at a three months chart we see that once it clearly broke its downward resistance level, CAGC took off quickly and closed 10% higher for the day.
So, the next question is how high will CAGC go? To answer this question, I zoomed into 3 months chart and looked from 1 month chart. As you can see from the 1 month chart below, there is a clear resistance level just below $14. This should coincide with S&P 500 and DOW Index resistance levels so I would again follow these index closely. This resistance is only short-term only. For those who are in for the long run, then I would ignore these short-term support and resistance levels. I personally will be exiting all positions in CAGC above $13, more than 20% in about 1-2 weeks span (enter price at $10.83) and consider buying more shares at lower price again.
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