Monday, December 24, 2012

Quick MCP Update

MCP has pulled back a bit, it's sitting right on the 50-day which I don't really care about, but other traders will. I'm more interested in the fact it hasn't broken through or hit a stop on the daily Trend Channel.

I'm not willing to go out on a limb past a move up from the recent consolidation and give an opinion on longer term views until the charts clear up on that end, but near term MCP looks like it is preparing for a move higher from the last move's pop and consolidation.

 5 min chart shows selling in to the last move up and a positive divergence on the pullback/consolidation.

15 min chart also shows the same except with a leading negative divergence and then a larger  relative positive divergence (white). Considering its holding the Trend Channel, I like it. I'd till view this as a more speculative trade in this area being the long term charts haven't aligned, but they have time, they may still.

I would watch for a possible head fake move below the 50-day m.a. as it's very obvious, it's a good place to trip up any stops that are likely right under it, if we get that, feel free to email me for an update if you are interested in the idea.



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