Kacy:
Interesting analysis.... I don't disagree with it at all. However, I only use end of day data myself so I don't feel very qualified to comment on signals based on 60-minute bars. As I've mentioned before, I tend to use fairly simple, medium- to long-term TA systems and put most of my energy and research into money management.
I think the only thing I might question in your analysis is that I wouldn't necessarily see it as bearish if MAN went to a new intraday high and then fell back quickly. Given the volume we've been seeing, I wouldn't be surprised if that happens and then MAN moves to new highs a few days later as positive news is "brewing".
The way you trade this thing all depends on your timeframe, equity situation and risk tolerance, IMO. If you only have a small percent of your pf in MAN, I would hold for a *long* time yet. However, if (as in my case) you have more than you should have [don't tell CC <g>], you might be looking to these obvious resistance levels as points to take profits and bring your position to a more reasonable percent of your pf.
I agree with Claude, btw, that it could easily sail straight through $7 and head for $10 on the right news. I would be delighted with that, even if I'd sold some at $7!! Another point to ponder is that if someone like me is selling some at $7, then hopefully someone with richer pockets is buying it from me and aiming to sell it at $14 <g>.
Exciting times ahead for MAN.
Regards,
Howy |
