Chart Watch: 7/13 - CGC is now more likely in a W(IV) double three that is going to end in a 3-3-5 extended flat correction.
On the 3rd leg impulse wave down within the 3-3-5 flat correction, we are looking at a 3rd Wave extension.
Scenario: 3rd Wave Extension: W3 is longest and can be any length. W1 and W5 are equal length (1.00) Status: IN PLAY W1(0) = 52.74 W2(1) = 44.17 W3(1) = unknown but look at Fib lines of support from Waves of higher degree = W(III) 0.5 support at 32.07 and 0.382 support at 25.66 But W3 length must be greater than W1 length if W3 extension Therefore W3(1) must be less than W2(1) - W1 length = 44.17 - 14.36 = 29.81 W3(1) < 29.81 = 25.66 or 0.382 of W(III) Fib support W4(1) = unknown but typically retraces 0.382 of W3 length = (a) IF W3 bounces on 32.07 Fib 0.5 support THEN W4(1) = W3(1) 32.07 + W3 length (44.17-32.07)*.382 = 36.69 = (b) IF W3 bounces on 25.66 Fib 0.382 support THEN W4(1) = W3(1) 25.66 + W3 length (44.17-25.66)*.382 = 32.73 W5(1) = uknnown but W4(1) - W5(1) = W1 length = 14.36 = W4(1) - W1 Length = (a) 36.69 - 14.36 = 22.33 = (b) 32.73 - 14.36 = 18.37
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8/22 - CGC hit 25.26 support. Expect a bounce off this line if it holds to around $29. If it breaks support next level down is $20.28 8/16 - CGC hit trend line at earnings on 8/13 and went down the very next day 8/14 7/24 - CGC going sideways, watch what happens for one more week Aug 2 when SP hits the diagonal trend line. Should go down. Hold for one more week. Breakeven at 33.70 7/17 - Watch for BCS setup when SP hits 38.50 resistance.