CSUN Follow Up

CSUN is another long trade set up that I mentioned last night, you may recall the overall pattern looks bullish, but CSUN was showing indications of a pullback which is actually better for a long position, less risk, and a better entry point.

 Here's the daily chart, which looks like it's putting in a short term bottom after a substantial decline.

 Last night I said to expect a pullback, the false move is one of our best timing indicators and this morning was no exception. Note the false move in the red square box making new local highs, but it promptly failed as 3C shows.

 Here's the bigger picture on an hourly chart, there's a nice positive divergence that looks like it can support a decent move higher after a pullback.

I used a 50 bar moving average on a 60 min chart as the potential pullback area because CSUN has traded well around the average. Note also that RSI gave a negatively divergent signal on this morning's false move up. Watch for a pullback around $1.90 and we'll take a look at CSUN n that area as a potential long trade.