Some weeks ago I wrote about the trading channel that CSR is in and thought that events of the last few sessions warrant updating you all on where the price is going. The other positive of recent trading is that it aligns several points that will help with your placement of stop-loss orders. The broad focus of this setup is one that is looking at a solid channel. Within this channel there is a great strength being shown due to the formation of a minor price channel as well as respect of some key volatility levels – read on:
As you can see on the chart there is a large channel in force which has been running for a few months. On the tail end of this I have marked a minor channel (in blue) which has seen price accelerate while trading in a narrower band.
The aspect which is most exciting is the price relationship to the moving averages and the volatility bands. In dark blue you can see the 200 day moving average. It’s sloping lower (which is not generally ideal) but we have seen price breach it and then respect it when they have again met. On the latest respecting of this level price has also respected the +1.25 standard deviation band of the 50 day moving average. This point makes the second trough of the new channel so it all meets up with one another quite neatly – and makes for a grand stop-loss level too.
I have marked some of the previous touches of the volatility band so you can see that it regularly features at turning points for the price. Happily though the channel is very useful if you are looking for something a little more conventional for a long-side setup.