MCP Position Update

I don't normally cover stocks like MCP, but we had noticed something going on with this one a while back and recently it seems their 10-year deal to provide Siemens with rare earth may have been what the pros knew about, but was only reflected in 3C otherwise, it certainly wasn't on Seeking Alpha.

Wednesday I posted this MCP Update with a few excerpts:

"...there are some near term charts suggesting something is building, even if it may not be the breakout that I suspect MCP will eventually make to stage 2.

My gut feeling is that MCP will see a bounce back toward the resistance area and likely not breakout. The other scenario is that this divergence continues to build, continues to migrate to longer term timeframes and does make a break out move, the reason I lean more toward the first probability is the 1 min chart which tends to show timing signals."

MCP is up +15% this morning. Given my suspicion of resistance in the $10-$15 area, I thought now is a good time to update MCP. I obviously won't be able to watch it specifically all day but I will try to check on it from time to time and if you see something that looks unusual feel free to email me for an update of the charts.

Since this Wednesday's update, MCP has put together a stronger set of charts. Whether this is enough to break out of the large stage one "W" base and move to stage two, Mark-up, is still an unknown. I have little doubt we will get there, I'm just not sure it has gathered enough of a head of steam on this particular leg. In any case it's a decent gain on the day.

Here are the most current charts…

 MCP daily chart

 The three minute chart with accumulation.

 Five minutes showing distribution at the pullback in small quantity and a larger accumulation period at the consolidation.

 Not many charts longer than five minutes where extremely positive as of Wednesday, but this 15 minute chart added quite a bit especially late yesterday. It's not only the divergence time frame that determines the strength but the size of the divergence. I'm on the fence whether this can make a primary trend breakout.

 Even the 30 minute chart showed strong activity.

 However the 60 minute chart, which is too early in the session to move to an in-line status, is still in a leading negative area on a short-term basis. If this 60 minute chart can confirm, I'd feel a lot better about a breakout, but it needs time to confirm as it is such a long time frame. If this had gone positive as well before this mornings move I would feel pretty confident about a primary trend breakout on this leg.

So far the intraday one minute chart is confirming.

I will try to put out a trend channel based stop later as we have more of a trend to put in the channel.