April 14, 2009
Moving Average acts as Support and Resistance
By Planet Wealth
CGG (Citadel Resource Group Limited) is another resource stock that is indicating it want to climb higher. Let’s take a look at the weekly chart.
The stock started back in 2001 and had some down moves until 2003 when it started to climb again. The long term trend is up dating back to 2003 and today CGG sits on this trend line and has been testing it since December last year with Higher Troughs.
The Moving Average that is on the chart acts as a very excellent wavy support and resistance. Should the stock break up and out of the current Triangle Pattern, and through the Moving Average, there would now be several elements that would indicate this stock could climb higher. Higher Peaks to add to the current Higher Troughs, trading above the moving average and a bounce off the long term up trend line validating it once more. This stock could one to watch for possible buy opportunities.
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Topics: Stock Charts, Technical Analysis, stock market | No Comments »
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