MCP Update

I'm geting a lot of emails about adding to MCP, my general answer is you are thinking along the right lines as this is a longer term position more than a trade, but I would wait a little before adding in MCP, I'll show you why.

 MCP daily-MCP moved up +9.5% over the last 3 days, yesterday's closing candle had a longer upper wick showing higher prices were being rejected, probably profit taking, it may have to do with the VWAP as well, but the candle is slightly bearish, it is a reversal candle although not a very well known or reliable one and came on some higher volume.

 Here on a 1 min intraday chart we can see profit taking in to the highs, that's not always a bad thing, a constructive pullback is healthy for the stock and gives us new opportunities. On the pullback today we are seeing the start of a positive divergence which is what we want to see during a pullback in a stock we like long, however it needs more time. Remember institutional positions aren't 100 or 1000 share orders, they are large; the best visual cue for accumulation is a rounding in the pullback or flattening out, that's where we see stable prices and the largest accumulation signals.

If I had more room to the right, I would draw a price pattern that looks similar to the one in the white box, basically a loss of downside momentum, a flattening out and as long as the positive divergences start to lead in that area, that is where I'd add or initiate a new position, not yet.