Yesterday I loaded up MCP and today it first looked like it was heading for a gap fill which you'll see, but I think it just got caught in the tide as it was/is in a transitional spot. Bottom line, I'm still very much ok with it.
This is the entire MCP base so we are still very low in the base, it's also a large base capable of sustaining a nice up trend once it moves to stage 2 and by the behavior of 3C and MCP itself, I think this is the last time it's going to be down at the bottom end of the base.
This is the more recent base, breakout/pullback. In orange is a gap fill and a psychological stop area at $5 where stops were definitely hit and I'm happy to say, accumulated.
The mind just gravitates toward whole numbers and that's where the stops are, that's why you never see anything for sale for $5, it's always $4.99 when you're shopping, believe me, I did a 4 week sales course in Baltimore and mass psychology was a big part-color too, ever notice all the fast food places have red (the first color your eyes focus on) and yellow (associated with hunger) in their signs? McDonald's, Burger King, Wendy's?
This is a 5 min chart today and the red arrow is the first move of the day to $5.00, volume spikes there as stops are hit.
This is the intraday MCP 3C chart, the positive and then leading positive divegrence are right at the $5 stop run (red arrow).
This is the leading positive 5 min divegrence from yesterday and...
Here it is today so there was no confirmation on the downside, but rather another divergence.
The only thing I'm not crazy about would be the reversal process, but I'm not sure that it needs one as it has been in an accumulation cycle and seems to just have got caught in the tide, maybe on purpose as it usually has very little correlation with the market.
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