MCP Follow Up

Yesterday I mentioned that MCP was starting to, "Rock" .

Taking a look at MCP this morning and still having MCP as an open equity long position, I'm very pleased with what I see and will be holding MCP as it showed some unusual promise even as it got knocked around after earnings and those signals have just developed even further. This is one I'll show some patience with based on the charts which at this point look overwhelmingly bullish.

 Note the large volume as MCP crosses resistance at 11/16's failed gap up, if you look closely at the chart, the volume spikes up right as MCP crosses above that area so it obviously triggered stops and limit orders.

 Here's the 1 min chart, other than showing the failed gap open, there's broad confirmation. I'll skip ahead a few timeframes, but the 2 and 3 min charts are confirming just as well as this one.

 The 5 min chart leading positive with a head fake move to a new low below support, which appears to be where the final burst of accumulation took place.

 The same with the 10 min chart, leading positive in a big way. As a reminder there are 2 kinds of divergences, relative which are the first ones we usually see and the more powerful leading ones in which the indicator is well above any relative price level from the past. The actual value of 3C and where the indicator is in relationship to price has no meaning, but the size and consistiency of the divergences from one chart to the next do tell us a lot about the character of the underlying action moving the stock-in this case, beautiful.

 Look at that 15 min leading well above price on the 9th when we were at 9.25, this tells us there's more institutional activity in the stock at this lower level than there was when price was higher and in that way we can get some idea of how powerful the move will be as we move forward.

 The 30 min is also leading hugely to the upside and finally...

A 60 min relative divergence followed by a leading positive divergence, when we hit the 60 min chart and have confirmation in all the other timeframes, we have something pretty special that we don't always see. This looks like a lot more than a stock just moving up because the overall market is moving up, this looks like there's real genuine interest in MCP and has been for a while as it made lower lows.

Price declines are not always what they appear to be and they certainly aren't all as bearish as most would think.