Q: Hi 5i
CCO ($49.70) hit my radar due to the roughly 33% pullback since the high in May. A couple questions: How does TA look to you? I've had success buying around 30 RSI and CCO is near this.
-It looks like CCJ trades about 3 times the volume compared to CCO. I've noticed US investors are more prone to pounding a stock lower than deserved, and on the flip side, will also push companies way higher than they should go sometimes. Would you agree? Do you think this applies to the run up in May (went higher than it should) and now perhaps is lower than it should be?
Thanks,
Greg
CCO ($49.70) hit my radar due to the roughly 33% pullback since the high in May. A couple questions: How does TA look to you? I've had success buying around 30 RSI and CCO is near this.
-It looks like CCJ trades about 3 times the volume compared to CCO. I've noticed US investors are more prone to pounding a stock lower than deserved, and on the flip side, will also push companies way higher than they should go sometimes. Would you agree? Do you think this applies to the run up in May (went higher than it should) and now perhaps is lower than it should be?
Thanks,
Greg
5i Research Answer:
Technicals look OK. RSI is positive but the 50-day moving average has crossed below the 100 and 200-day averages, which is typically bearish. We fully agree on the US trading. US investors tend to take big bets, both ways, and are more aggressive momentum traders, than Canadian investors. CCO is still seen as somewhat cyclical, so this week's recession and China worries would have been contributing downward factors.