I think my entry here two days ago was a little early as it formed a black candle the next day. Yesterday, MPI looked like it would retest its support at 3.55 and today, it did. However, instead of breaking below this support as I expected, it bounced from it. This confirms that the buy signal I saw two days earlier was correct but just a little advanced. Before I proceed, let me explain the range you see in the chart below. Key price points are 3.55, 3.75 and 3.94. I know they're narrow but they should help intraday. The midpoint, 3.75, should determine where MPI is headed. A break above 3.75 suggests that MPI is headed higher to 3.94 but if it fails to do so, then back to 3.55.
Given its move today, I expect MPI to retest 3.75 tomorrow. Next resistance may be found at 3.94. Ability to break above 3.94 should tell us that MPI will be resuming its uptrend with a target of 4.20 / 4.33. However, if its resistance holds, we can assume will be continuing its consolidation, thereby headed back down to support levels 3.75 / 3.55.
By the way, I'm not sure if it's just me but I'm not feeling the strength in other issues aside from mining. Sure, there are exceptional ones but that's just around one stock per sector. So, I'd watch these resistances very closely. :)
1 comments:
Retested 3.75 but failed to break above it. :P
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