Via our research, we’ve maintained two views on CLS:
- The medium term ascending triangle is positive and could see higher levels being tested (possibility of 31300c/32200c), however
- In recent days (the ultra short term), the price appears to be extended well above it’s mean, with the technical indicators suggesting the price in overbought territory and, with the reward-to-risk starting to appear attractive for an ultra short term retracement.
Technically, the drivers for a short term pullback are as follows:
- Price extended outside of it’s 200-period Linear Regression Channel
- Price overextended vs both 20-EMA and 50-EMA
- 7-RSI RSI at 94; 14-RSI at 85 – both in overbought territory
- Considering the Bollinger Band indicator (not visible), we note the price trading well above it’s mean.
On this basis, we consider a sell/short, with the following levels:
Sell/Short at current levels 29581c, or higher