Based on this chart i will set my stop limit just below the 200 SMA at $57.50
https://schrts.co/tRVNxnXs
Seem reasonable for downside protection?
With the BOC lowering rates i think that is positive for small caps like CLS however i'm still nervous about a broader market decline.
While we cannot personalize responses, stop losses positioned right at key support lines can be challenging as often times a stock will drop below support (often a moving average) and can quickly bounce back up, sometimes within a day.
We continue to like CLS, but it is facing some downward pressure due to general market weakness around AI names and the broader tech sector. The market is beginning to broaden out with rates coming down, and this has supported and helped boost the prices of real estate, healthcare, utilities, and financials. It trades at a cheap valuation of 12X forward earnings, analysts have been raising their forward earnings estimates, and it generates good free cash flow. We continue to like the name, but if it breaks much below $55, we might have to reassess the situation.