Normally with a drop like MCP took after earnings (even though we exited an MCP long on a breakout because it had not done precisely that before the breakout), I'd normally expect a much larger reversal process, but this falls a lot closer to the, well it falls right in to the "Parabolic move" category and I never trust parabolic moves whether up or down as they tend to reverse just as fact in the other direction. With MCP holding on to its positive signals, I suspect there's something beyond earnings that has someone big interested, much like the RIMM earnings trade which went almost exactly like this and ended very well for us.
Here are the charts for MCP as the parabolic drop has put in a reversal process that would be symmetrical in size considering a parabolic move.
intraday 1 min
Intraday 3 min with very interesting recent activity.
The 5 min chart in the area that would be considered the "reversal process" for a parabolic move of the size it saw.
The 10 min really still positive as if nothing ever happened.
The same is true of the 15 min chart
And very true of the 60 min chart.
There has been MORE than enough time for the 60 min chart to confirm lower price action and move down to a new low, it hasn't, this is one of several reasons I keep MCP as an open long trading position.
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