MCP Update

Friday as MCP  broke below a clear support line (it's important that it is clear as that's where all the stops and orders will be), I added to the long position there on what I feel is a highly probable head fake shakeout move that we see very often before a reversal (in this case to the upside).

Here's MCP's updated charts today, I still feel fine about Friday's add to.

 This is a 2 hour chart of MCP, sometimes to put things in proper perceptive we need to look at the larger picture and remember why we are in certain positions. This is a leading positive divergence on an important timeframe, it fits very well with the feel I've had about MCP since we first started looking at it, that MCP was likely in a base, it would be more volatile because of that, but the bigger the base, the stronger the move that comes out of it.

 Here's what I suspect is a head fake move last Friday on the daily chart, MCP has a lot of traders out there and it's a very obvious level to go trolling for stops and limit orders.

 The 1 min chart shows a very short, but very visible negative divergence just before MCP made the move I suspect is a head fake move, it was not a large divergence or of any amount of time that would have me suspecting solid, real distribution, instead it looks just like a head fake move. Since MCP's looks to be pretty neutral which is good because there's no downside follow through, but it also looks like much of the market today with the 1 min charts looking neutral while longer term charts see more underlying action.

 For instance the MCP 5 min never confirmed the downside move even after nearly 2 days, rather it stayed leading positive.

The 10 min chart is also starting to actually improve since the move lower to a higher leading positive divergence, so all in all, I feel fine with having added, holding and if I didn't add on Friday I'd have no problem adding here.

Just remember that because MCP is in a more volatile base, a wider stop is needed, it's better to take on fewer shares with a wider stop initially any way.