MCP Update

I was looking at MCP as a possible sell to raise dry powder as I think we'll be extremely busy next week, likely right off the bat Tuesday afternoon, but after looking at the charts and the bigger picture, MCP is at the point where I'd call it, "A chart that I don't ignore".

I think it's much more likely that MCP is added to early next week as I think we get a little downside, see yesterday's post, and that's likely about all we get.

This is the little bit of downside I think we may get early next week as this is a 1 min chart and 3C charts tend to pick up where they left off, even over a holiday weekend. This would bring MCP back to the area where it has been seeing prior accumulation, the reason I don't think we get much more?

First there is the large base and the reason we exited MCP on a nearly +6% breakout day, MCP HAD NOT YET SEEN A HEAD FAKE MOVE ON A VERY LARGE BASE WITH CONSISTENT AND VERY VISIBLE SUPPORT AT THE $4.50 AREA.

 As you may recall, even after the bad earnings reaction, the MCP charts stayed strong, just like the RIMM scenario when we were long in to bad earnings and took some double digit draw down, HOWEVER THE CHARTS STAYED STRONG IN RIMM GIVING ME NO REASON TO CLOSE THE POSITION. 

It was only several weeks later that we found out the real reason for the strong 3C charts, it wasn't earnings, it was a massive shakeup in management in which the twin CEO's stepped down and RIMM was going to be completely restructured which the market liked as did we as it sent a double digit decline in to a double digit gain in short order, SO LONG AS THE CHARTS STAY STRONG  and in MCP's case, they are strengthening, PLUS, we have our head fake move...

 Here's the base with VERY consistent support or a range, this is the reason we exited (correctly) a nearly +6% breakout day, the concept of a head fake move below a very obvious range had not been met, thus I didn't trust the breakout from a descending triangle, we were right not to as we only gave up 1% gained the next day before MCP's breakout was revealed as a false breakout or head fake, which 3C confirmed the day of the breakout.

The move below support now is proportional to the base and the reversal process...

Is proportional to the head fake move.

Why do I call it a head fake move when it hasn't proven it yet by breaking back above former support (now resistance)?

Charts like this 30 min that continue to lead.

Or a 60 min like this that never confirmed the break lower just as the break higher was never confirmed and ended up being a head fake move.

Thus, no extra dry powder here, I'll likely be looking to raise more so I can add to MCP , I suspect early next week.