Happy Friday folks. Another week in the books and I truly hope it was a splendid one for all. Let’s go ahead an launch straight into the signal on CNP. Post-haste!
CNP has been extremely bullish over the past few months, moving higher with few opportunities to enter on higher lows. But now we have that chance thanks to a pullback, which is using the 50 SMA as support and has formed a double bottom reversal! Nice. It is oversold to boot, which as we all know, makes it a prime buying candidate. If we do see this move materialize, we could be looking at a pop back up into the $29 zone.
The strategy that fired this signal is our old friend, the MS-16. MS-16 works by using two different momentum based systems and filters based on trend. MS-16 also uses an indicator called Days to Earnings which helps traders avoid trading into earnings reports, offering a extra layer of safety. MS-16 scans for stocks that are outperforming the current market but have also undergone significant pullbacks against its prevailing trend. This leads us to great reversion opportunities like we see here in CNP. This could be a mover and a shaker so keep a close on it CNP and MS-16.
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