MCP Charts

Busy Morning so far, but through all the noise, I have confidence we are correctly positioned.

MCP is a long term long position, one that has spent considerable time carving out a base, a base that can take MCP quite a distance.

The question is whether to take +20-plus % 1-day gains and re-estblish the long on a pullback or stick with it, I don't think there's a wrong answer, just which is right for your style, risk tolerance and time.

 MCP is in the same category for us as UNG (which looks good in here by the way-it's still an add-to or buy in my view), they are both long term (almost investment) long positions. 90% of stocks will follow the market, these are the kind that will buck the market trend, UNG for obvious reasons.

Note how the 5-day chart of MCP looks very similar to what attracted us to UNG a year ago? The reduced ROC, huge volume, flat area for a base...

This is part of the "Using Technical Analysis Against Traders"- at least those who refuse to adapt.

MCP went from stage 3 top to stage 4 decline, no stage 1 or 2 since listing, we are now in stage 1 moving to stage 2. The end of stage 4 (DECLINE" is capitulation, a gap dpwn, large volume, all longs capitulate, but that is subjective on the right side of the chart, only when looking to the left can you say what, "Big volume " is.

In a classic move, after initial capitulation which I always warn will make further lows, there was a support area, very clear, that was taken out on larger volume as longs entered too early on what they thought was capitulation.

We had another head fake move that built the base, note the low volume and boring range, that's where the magic happens.

 A head fake move is very typical in a base, but so is a rather tight range and low volume, no one is paying attention while this stock is seeing some intense action.

My X-Over system for long/ short signals, we have a long signal and the first pullback should be to the yellow 10-day moving average at $5.51 right now, but that will change-still that's the first area to look for an add-to or initiate a new position if you like.

All 3 signals including the middle custom indicator are firing long-this is to avoid false/whiplash price crossover signals.

 The Trend Channel shows where the short stopped out (white arrow) and where the current long stop is, although I'd use a wider channel for a trending trade, ironically it's at the same $5.51, it too will move higher locking in profits.

 The 10 min chart shows the accumulation for the breakout move, it also shows profit taking in to today's move.

This is the 4 hour chart, the main underlying trend, the path of greatest probabilities and it is a huge leading positive divergence so you can take profits here and re-enter at the 10-day at lower prices and less risk or hold, there may be follow through next week, but 3C doesn't seem to think so.

Longer term, I have no position just holding, putting this one away and let it take care of itself.