Seems to be a lot of TA guys here. Here's my spin on MRVC technicals----comments/criticisms welcomed:
Solid support of 70, established late January/early February, has been successfully tested this week, implying a bottom and a potential reversal. Evidence for a reversal comes from the candles: a near Doji on Tuesday, followed by an inverted hammer, then another near Doji, with tails smaller than the first near Doji. Friday's tall white body is a bullish candle.
Stochastics, price ROC, Williams %R, and MFI all showing oversold conditions. OBV is high and now angling upward, indicating buy. There are very aggressive looking stochastic and price ROC crossovers, indicating buy. Williams %R and RSI have moved sharply upwards from very oversold, again both buy signals. MFI also angled upward from oversold levels, but not as sharply, yielding a buy signal that is not as strong as the others. 10 day average volume is 145% of 3 month average volume, consistent with increasing market interest, though as others have pointed out, this could also be accounted for by shorts covering their positions (I'm not sure it makes much difference----a buyer is a buyer; who cares why they are buying?). MACD has not confirmed the crossovers noted above yet, but the histograms have started trending back towards the neutral line, and a crossover with the moving average appears imminent, which would complete the final remaining buy signal confirmation.
askresearch.com
askresearch.com
Even with Friday's close, the stock is still over 50% off it's 52-week high, so upside potential appears excellent. Downside potential seems limited, since support is good at 70, as we saw last week. The stock historically has best approximated the 10 day ema, although the 20 day ema is better support. But even with Friday's close, it remains below the 70 day ema, which would be just under 100. Intraday, the stock closed very strongly, moving from 81 to just under 95 in the last 90 minutes.
In sum, nothing but strong buy signals, and indicators showing reversal, though this should be confirmed with a couple more closes above 90. I can't find any technical reason to not buy this stock (my buy order is in, btw).
JMVHO, as always................
Walkingshadow |
