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.
Point and Figure Chart
The current campaign target has a price objective of $1.25
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.
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.
Wyckoff Accumulation Schematic
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.