Squeeze setting the table for an interesting new short entry.
We've been short $CMG for some time...way before greenlight. We see today's PM price action as a clear squeeze following a putative breakout of the 5 day intraday resistance line, which was briefly broken on Monday, before falling back.
But now a clear squeeze...right to the 50% retrace of the 11/7 high to the 11/15 low ($269.12). We note it started when the RSI (aapl) jumped over the ave line.
But here is the thing. We have two other resistance lines that need to be peiced before $CMG is no longer an attractive short. The key one is the primary falling resistance line defined by the day close on prior swing highs for up days ... which today is at about the 61.8% retrace of this same range at $272.83.
As such we are adding to our core shorts here on this squeeze, with a trading tranche of 1/3 our core. Playing for a pull ack... liking a retest of 38.2% retrace at $265.45 which we see as required before $CMG can cleanily break out or break down the Smy Tri she has been stuck in since 11/6. (Of course news trumps technicals, so...)