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Last Tuesday afternoon, hours before CAVA (Cava Group) was scheduled to report Earnings, this is what I posted for MPTrader members:CAVA reports Earnings after today's close. Approaching the news, CAVA is circling 61, a full 40% beneath its April 2026 high at 98.79, amid an unconfirmed new corrective low at 60.21 yesterday (8/10/26), leaving CAVA positioned for a "buy-the-news" setup (the opposite of a sell-the-news setup in a name that is up 30% to 40% approaching Earnings).
Some stocks seem priced cheap because the market has overreacted to the downside. Others are cheap because the business is not earning enough to justify a higher price. Telling those two situations apart is most of the work, and for a long period of time LYB sat squarely in the second group.The math was not subtle. LYB posted a net loss in 2025 on falling revenue. The dividend it was paying out cost several times what the company was actually generating in cash flow. That is not a discount.
Note that simple symmetry support along with a 1.618 extension of a prior swing identified the 61970-62405 area of support as a key decision as it included 3 price relationships in a relatively tight zone. I can't tell you that I predicted the type of rally we got off this area, but the support held beautifully and with this really we cleared quite a bit of overhead resistance within the last few trading days. Remember the way we use Fibonacci is we identify a setup such as a price cluster.
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