Ceylon Graphite Posts Bullish CCI + Head & Shoulders Bottom Ceylon Graphite Corp forms bullish "Head and Shoulders Bottom" chart pattern
Aug 16, 2022
Trading Central has detected a "Head and Shoulders Bottom" chart pattern formed on Ceylon Graphite Corp (CYL:TSXV). This bullish signal indicates that the stock price may rise from the close of $0.14 to the range of $0.17 - $0.18. The pattern formed over 44 days which is roughly the period of time in which the target price range may be achieved, according to standard principles of technical analysis.
Tells Me: The price seems to have reached the end of a period of "accumulation" at the bottom of a major downtrend; the break up through resistance signals a reversal to a new uptrend.
The Head and Shoulders Bottom is created by three successive declines in the price following a significant downtrend. The lowest low (head) is in the middle, flanked by two higher lows (shoulders) at roughly the same level. Volume is highest as the price makes the first two declines, then diminishes through the right shoulder. Finally volume surges as the price closes above the neckline (drawn between the two highs) to confirm the reversal.
This bullish pattern can be seen on the following chart and was detected by Trading Central proprietary pattern recognition technology.
Ceylon Graphite Corp forms bullish "Commodity Channel Index" chart pattern
Aug 16, 2022
Trading Central has detected a "Commodity Channel Index" chart pattern formed on Ceylon Graphite Corp (CYL:TSXV). This bullish signal indicates that the stock price may rise from the close of $0.14.
Tells Me: The price is relatively far from its 20-bar average price.
The Commodity Channel Index (CCI) measures the deviation of the price from its average value (comparing to a chosen moving average, typically 20 bars). The oscillator is normalized by dividing by the typical deviation, so we get an oscillator fluctuating roughly between +100 and -100. Many traders use these as overbought(+100)/oversold(-100) markers and watch for signs of reversal, but original use was to consider long positions when CCI is above +100 (bullish event), and short when below -100 (bearish event). When the price crosses back in between +100 and -100, another event is triggered to indicate an end to the prior bullish or bearish situation and a possible opportunity to close out such a position.
This bullish pattern can be seen on the following chart and was detected by Trading Central proprietary pattern recognition technology.