CTRP broke through the 2-1/2 year rising trendline (from 06 Mar 2009/18/25 March 2011 weekly lows) to reach 35.36 before consolidation took hold. The bearish momentum and trend studies on the weekly chart continue to point lower. While 43.20 (02 Sep high) near the long-term trendline resistance caps, scope remains for a retest of the 35.36 (12 Aug low)/35.44 (09 May 2008 high) support/resistance cluster near the key level at 35.00 (Support 1). A downside break there would weaken the medium-term outlook and initiate the next down-leg towards 31.35 (Support 2) near 50% retracement of the 9.50 (06 Mar 2009 low)/53.16 (05 Nov 2010 peak) rally. Further weakness there would expose 26.59 (Support 3) near 61.8% of retracement. However, recycled strength above 43.20 (Resistance 1) would improve the outlook and allow bulls to seek 47.54 (Resistance 2) which guards 50.47 (Resistance 3).
Trading Indication:
Short-term (Intraday):
Sell at 42.5 or higher
Target at 31.35 and lower; Stop Loss at 43.20 (1.7%)
Long-term: Possibly buy lower
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