Well, just a couple days after getting out of a long position in CBE, I jumped into a short position with multiple indications pointing to lower prices.

I’ve got them all pointed out on the chart but let’s run through them to get a little more in-depth. First, CBE formed an inverted hammer as it closed almost 3% off highs. Combining this with that huge volume spike a couple of days ago makes me suspect a lot of selling here.

Taking a look at the price, we see that CBE has advanced over 11% in the last 5 days and the RSI is right at overbought levels. That is a lot of movement in a little amount of time and combined with the resistance, I expect to see the stock reverse and head lower.