There is another trading day for the last bar to be complete with CPU. Lets look at another monthly Bullish Pivot Point formation. We can try and analyse 20 + bars on a daily chart and do our head in, if our investment time horizon is months to years. Is there a point even looking at a daily chart if the investment time horizon is months to years ? Probably not.
In the case with CPU last month (September 2016) confirmed a bullish pivot point reversal. Where did this happen ? At the demand line or at a support. SUPPORT & RESISTANCE levels are created for a reason in my humble opinion. Who creates support/resistance ? Probably the SMART MONEY. What can/may happen with CPU if this bullish pivot point is successful ? A potential retest of the resistance line in the zone of $14 – $15 in my opinion.
Below is the Monthly Chart of CPU showing the last bullish pivot, followed by PnF chart of CPU.
I am not in CPU.
Lets switch to our PnF chart and take a Vertical Count from the last Low Pole. What is our Tentative Bullish Price Objective ? It stands at $14.15. What does this mean at current levels that CPU is trading ? For every dollar that one may risk a potential reward of approx. $3.5. Is this a good risk/reward ? To me it is. Does this mean that it will happen ? No. A game of probability not certainty.
Daily PnF Chart of CPU below.
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