After reaching new 2019 highs four weeks ago CMG began to consolidate above solid support. As a new week begins the stock is piercing the upper band of a narrow bull pennant. At mid day shares are up 1.5% and appear heading for new all time highs and beyond.
CMG has layers of support in place between $$740.00(last week’s high) and $730.00. A close back below $717.00 would violate last week’s low sending a clear warning sign. At current levels we consider CMG a fairly low risk buy. Once the $760.00 area is convincingly taken out the stock will have room to run.
At time of publication we do not have a position in CMG.
Earnings are due July 23(PM).