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Fan Yang

CBS Corp (CBS) to Challenge Key Support Around $48

CBS Corp. $CBS has been in a choppy consolidation mode throughout 2019. This is within the context of a long-term bearish trend since early 2017 when price failed to push above $70. CBS eventually tagged $42 at the end of 2018. In 2019, we can see that price has been in a choppy upwards channel, or a wedge pattern.

CBS Daily Chart

(click to enlarge)

Wedge Consolidation:
- Let's saw the 2019 wedge is simply a consolidation pattern within the bearish trend since 2017.
- Price has to hold above the $48-$50 area to keep the bearish outlook at bay.
- In fact a hold above $50, with the RSI holding above 40 could be a bullish sign.
- However, a break below $48 would likely be part of a bearish continuation scenario.
- On the weekly chart, we can see that if price does continue the downtrend, we can see downside towards the $38-$40 before key support.
- Also on the weekly chart, we can see that price just respected the 200-week simple moving average (SMA) as resistance, which is a bearish sign.
- Furthermore, the weekly RSI also held under 60, reflecting maintenance of the prevailing bearish momentum.

CBS Weekly Chart

(click to enlarge)

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