MCP is up +2.72%, after being quite a bit more earlier and +27.75% over the last 5-days.
I like MCP still, I think it has a lot more upside, it hasn't even seen a short squeeze yet and it's one of the most shorted stocks in our very own MSI (Most Shorted Index). However it is reaching a resistance area, ,momentum is falling off as you can see by today's daily candle which looks like a star and the 3C charts are showing the same. I'll show you what I think will happen next.
On a daily chart, I suspected this well defined range was seeing a stop run under it which opens up a lot of supply at cheap prices, volume for the day suggests that's what happened as well as 3C charts, but there still needed to be a reversal process or that rounding bottom possibly with a head fake move which
Volume has looked good on the up days thus far, although today it's looking tired as it hits range resistance.
My X-Over system gave a confirmed long signal at the 3 white boxes and as is typical, the first several pullbacks were to the 10-bar average, I think the next will be to the blue 22-bar average on a 60 min chart. On a daily chart, MCP is just about ready to put in a confirmed long signal as well which is even better,
The 60 min chart in the area of the head fake and reversal process looks fantastic and still does so I'm not too concerned with anything beyond a pullback in MCP.
The 30 min chart also looks great which also eases my mind about a pullback.
Even the 15 min chart is confirming the uptrend so I'm really not concerned with this being anything more than a corrective pullback to gather some strength before pushing through resistance as this one has already put in more than a +25% gain in 5 days, it needs to shake out some of the weak hands.
The 5 min chart is where we see the probability of a pullback and that's about as long as the negative divegrence goes out.
The intraday 1-3 min charts look like this 2 min so there's profit taking and this really looks like it will visit the 22-bar 60-min moving average.
I'm holding.
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