MCP Update

Yesterday I mentioned MCP, specifically to a member who was looking at it and said, that's a triangle, you know what it's missing? His reply, "Yeah".

That's part of our concepts of Wall St. using TA against traders, MCP with such an obvious triangle was missing a head fake move, right at the apex of a triangle, it's almost guaranteed and the member knew that without having to think about it, that's what we got today.

Now lets take a look and see if you can spot what is missing before MCP offers a nice long entry...

 This was what MCP's daily chart looked/looks like, the head fake move would almost certainly be there, today's move below the triangle will likely turn out to be a head fake move, but just like earlier today when I didn't enter the IWM calls on the break of $116.19 because I didn't have confirmation yet, we need confirmation no matter how likely if we are really going to have probabilities lined up on out side.

 If you look at MCP's 15 min chart, what's missing now?

If you said a reversal process you are 100% correct, even with a 1-day or half day move down, we still should see a proportional reversal process whether in the form of a "U" or a "W" or a rectangle, etc.

 The 1 min intraday chart shows us what looks to be a loss of downside momentum or one coming as some light accumulation starts, this is likely the start of a reversal process, it's not where you buy even though you have the probable head fake move in, we need to confirm it even though there's an exceptionally high probability it is a head fake move, timing matters as well.

The 5 min chart has a relative positive divergence, that would be a start too, so watch for price to start losing downside momentum and moving sideways, that's where we'll find the confirmation we need and perhaps get in to MCP at the right moment with a better entry and lower risk since the break of support, it can also set a bear trap that gives us lots of upside momentum when it's ready on a short squeeze, keep MCP on the radar, it did what we would want to see it do, now lets see if it finishes.