MCP-Update

This is another to keep on the radar, I may add to this position on a pullback. This is not a primary bull trend trade, but there are very few out there (UNG, RIMM and FB maybe), but this does look like it is in line with the market cycle and can provide a good return with very low risk.

 First MCP has had a definitive change in character in the price and volume trend, if you don't see it you can throw a moving average or Rate of Change on it, changes in character lead to changes in trend.

About 80+% of the time when we have a reversal on any timeframe from 1 min to daily, we almost always see a head fake move or a failed move like in this case a break below clear support in the yellow box. There are reasons for this, they set up bear traps, shakeout longs, make it easy to accumulate or distribute larger positions as you can see volume jumped up nearly 300% on the break below support and when you get  reversal the bears caught add fuel to the upside momentum as they cover at a loss. There are many more reasons, but it's a trend we see so often we just assume we'll see a head fake move before a reversal and it has become part of our timing to tell when we move from accumulation to a reversal.

 The 30 min chart has a CLEAR change with a huge leading positive divergence and note where, right under support where large volume was triggered, someone has to take the other side of the trade and smart money can accumulate in bulk on the increased volume and not raise any suspicions as the stock is moving down and someone has to take the other side of the trade. This leading positive divergence isn't there for no reason.

 A 15 min leading positive...

 And a 5 min, but we also have a smaller negative suggesting a pullback, this is what we want, the trade to come to us at a lower price with less risk.

Even using a buy right here and a 60 min Trend Channel for a stop, the risk on the position is about 3%, I suspect we will get a pullback close to the $7 level so the risk would be even less -this is one to keep on the radar if you haven't already.