Cgnu

[Sellnow]

I notice that over the last three days CGNU appears to have been unable to get above what had been the support level of £7.90 (now resistance) that had existed before it announced it was going to cut its dividend. Does anyone have a view of whether this might be an opportunity to short CGNU?

Thank you to FTSE Beater and Ritz for your comments on Lex.

Cheers,

Sellnow.

 

[Apanda]

Hello Sellnow.

In my opinion CGNU is ready for a break out.
Rsi is OK. MADC still OK. and the sector is recovering from Sept 11th.
I am Long on RSA. for the Medium Term, and consider CGNU also a medium Long.

Regards,
Apanda.

 

[titus-uk]

CGNU

Ultimately, all break-outs are driven by volume. And CGNU has risen 737 to 794p in the last 11 days, with all days bar one on lower than average volume. It is now at resistance. there is no evidence of accumulation. In the end, you can only be primed to act as the market dictates. But things appear to be in a trading range than a breakout, and at the top of the range at that. We shall see, though I would feel a retracement is more likely......

All the best

Mark

 

[ChartMan]

Decide later- at 800 it should be long, but beware a false breakout.It has the strength, but not the volume...yet.

 

[Apanda]

Very interesting Sellnow and CM,
after all its the varying views that make a market.

I remain bullish on the sector for 2002,

Apanda

 

[Bill G]

Goldman Sachs believes there is 10% upside in the sector.

 

[FTSE Beater]

Hi all.

I think Sellnow has the Support and Resistance switch spot on. I'm with Apanda on being bullish about CGNU. There is either a double or triple bottom created at support at 714. This means a close above 790 for me would lead to it's price target of 856. The next resistance after that would be 900.

To short CGNU I would be looking for a break of the recent uptrend.

Hope this helps