Daily Chart:
Obviously, the price broke the support line two days ago. Based on this, it is definitely not a good idea to long CSCL now. It is currently testing this support again. If it can return back above the support line, then it provides good evidence for NOT TURNING to bearish yet.
Indeed, what makes me optimistic is the weekly chart, let's see:
A beautiful triangle is formed with the candlesticks in 2010. Triangle breakout (upwards) would lead the price to the last high 3.67, further breakout would have to be accompanied by a bullish market.
My suggestion according to these two charts is: If the price of CSCL rises till around 2.95 these two days, and close above 2.92, then it would be time to long CSCL. $3 is a big resistance. The strategy is: after buying the stocks, if it drops back below 2.90, we have to stop loss. If it breaks $3, then just wait till $3.6.
Of course, if it can't get back above the support level, we could do nothing but buying a put warrant.
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