aka CBI has entered the thin air of the low volume void.

My previous analysis of Tempur-pedic (TPX) and Redwood Trust (RWT) focused on stocks that had formed low volume nodes (LVN) in areas that were thinly traded in the middle of their historical pricing structure.  Today’s look concerning CBI is quite different from those two.  Here is the weekly showing nearly 10 years of price and volume data:

The only meaningful resistance remaining is represented by the two blue arrows found in February and May of 2008.  Above 50, I foresee a push to all time highs in the low 60’s.  While it is not likely to get there in a single swift move higher (i.e., stairs up, elevator down), there is little in the way of historical pricing equilibrium in this area to stop an advance.

My initial buy point is around 49.50.  After that, I’m ideally looking to add chunks of shares and go the distance to an all-time high.

-EM

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