$CALA Accumulation vs. Re-Distribution

Seasonality Chart

A review of the Seasonality Chart suggest the next two months may have limited returns.  The poor performance during these months is a concern considering the ongoing fall value.

CALA seasonality

 

Point and Figure Chart

The current campaign target has a price objective of $1.25

CALA PnF 3BOX REVERSAL

 

Daily Bar Chart

A review of the bar chart shows that CALA may have reached a “selling climax.”  If so, this increases the probability that a “stopping action” is present.  Price and volume suggest that we are seeing signs of accumulation.  I would like to point out that selling demand has contracted on the most recent test of support.  Buying demand also appears weak off of this support.  Considering the above $1.25 campaign target has not been achieved this could become re-distribution.

bar chart

 

Point and Figure Chart (ATR)

The point and figure chart below allows a closer look at the supply and demand present during upwaves and downwaves present.  This supports my bias that a “selling climax” is a very reasonable consideration.

cala pNf atr

Wyckoff Accumulation Schematic

Accumulation

I’m leaning toward accumulation vs. re-distribution.  From a trade perspective longs have less risk here as they are buying support.  I would not be surprised if we saw prices dip below support to “shake-out” weak hands.  If a shake-out happens it could be enough to achieve the $1.25 Campaign target.  If this happens I believe the dip will be bought and create a “spring” significant enough to achieve the upper targets noted above.

This trade should be actively managed.

Good Luck!

 

 

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