Costa Group Holdings Limited (CGC.ASX)

18 January 2019


Technical Summary: There is one thing worth talking about in this technical update of CGC. And it is not the fantastic uptrend that dominated the price action for the last few years. Things stagnated a bit over the last year with the stock largely trading sideways. This was until very recently when the stock gapped down nearly 40% on a fundamental update that the market did not like. The stock moved from over $7 per share to below an open below $5. So if you felt the uptrend was not over before the gap it almost certainly is now. The gap was nasty and probably caught most holders off guard. The volume was huge suggesting a big liquidation. There was an opportunity for a mean reversion / oversold bounce that ended up playing out. The question going forward is whether this kicks off a downtrend or if the price of the stock will bounce back from here.

Huge gap in the CGC price, buying opportunity or warning bell?

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