Is Cree ready to make a move? As you can see in the weekly chart below, Cree has been in a downturn for two years. You can also see in both the weekly and daily charts that in the summer of 2015 it started to form a soft rounded bottom. Now both charts are showing that Cree is starting to make a move above the resistance that formed during the consolidation period between July 2015 and January 2016. That level of resistance is around 29.
There were several early entry bars on the weekly chart and then the weekly squeeze fired off.
When the early entry bar closed above the 8, 21 and 34 MA’s on the weekly chart was a good first entry. Also, at this time the momentum on the weekly squeeze was positive and price was just above the 29 resistance level. First target is 31.50 – 31.75, which is the next resistance level. The next trade could be to wait on a pull back to the 8 or 21 MA, or waiting to break the next resistance level at 31.50 – 31.75. Then the next level of resistance is around 36.
See more of Tucker Stipe’s Analysis HERE.