MCP Quick Update

MCP is looking like it has put in a reversal process, what's interesting is that almost 6 months ago we forecast that they were going to get financing and someone with deep pockets or possibly an investment bank who put the deal together had let word slip on the street, this seems to be the most plausible explanation for the continued positive 3C divergences despite price action which is a similar situation we had in RIMM, but in that case it was about a major shake-up in management.

In any case, after they announced they got the financing (which we called correctly), the market acted like it was a surprise and pulled back as if to accumulate the news which happens when news isn't discounted, but in this case it seems it very much was as we were able to call out the exact reason we thought the positive divegrence was there and it came to fruition. In any case, whatever is actually happening, a shakeout, etc the positives are still there longer term and the intermediate to short term are looking stable and solid. I consider MCP a hold at this point.

 There are quite a few support and psychological magnets that can create the kind of volume larger players need to accumulate, there are several. As far as an upside move, I think the psychological levels are pretty darn close to the former support (stops) so I'd be looking for moves above $2, $2.50 and eventually $3 before I felt we were on a serious path to the upside.

 The 2 hour chart has held together which is interesting as most moves down would be confirmed rather than divergent.

More recently, since the financing we have the move down and the kind of intermediate term (30 min) divegrence that looks like accumulation of that news as if it were a surprise.

The divegrence is all that's really important to me though , the rest is just detective work that really doesn't change much.

And near term the 5 min is looking very good in a bowl/reversal process area as well as short term...

2 min showing a couple of areas where stops would have been accumulated and it looks as if they were.

Like I said, for now I consider it a hold, if anything additional develops I might upgrade that outlook.