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CALM: Be Prepared For A Catalyst

Published 12/11/2014, 12:22 AM
Updated 05/14/2017, 06:45 AM
CALM
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Eggs are not a perfect round sphere. They are oblong ellipses. But there is beauty in that shape. Symmetry of a simple ellipse no matter how you rotate it. Perhaps better than a sphere. Noticeable.

One company that sells eggs is Calmine (NASDAQ:CALM). And it has that same symmetry in its chart of the stock price. The chart shows a symmetrical triangle pattern building. This pattern looks for a move equal to the wide end of the triangle on a break out in either direction.

CALM

A 12 to 13% move. But which direction? That is the beauty of the pattern. You do not know and you do not care. The momentum indicators do not give a clue. The RSI is running along the mid line and the MACD is flat. Once it does break then you can just follow along with a long or short trade.

Be prepared. There is a catalyst as they report earnings December 23rd, but it looks like it may not wait that long.

Disclaimer: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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