Clarus Corporation showed some bullish divergence between the GoNoGo Oscillator making higher lows while price made lower lows in March.
When GoNoGo Oscillator broke above zero on heavy volume it was a leading indicator that GoNoGo Trend may struggle to hold on to NoGo colors. Indeed, GoNoGo Trend cycled through some weaker pink “NoGo” and then amber “Go Fish” bars before a “Go” was identified on an aqua bar March 16th. Now, the sideways price consolidation has caused GoNoGo Oscillator to fall to zero where we see the climbing grid of GoNoGo Squeeze rise to its max as volatility is reduced on directionless momentum. We will look for GoNoGo Oscillator to break out of the squeeze and if it does this to the upside we will see a Go Trend Continuation green circle appear under price suggesting that momentum has come back in the direction of the “Go” trend. Potentially, this would be a good low risk entry.
