Re: MMR ... The MACD looks like it is weakening because price is in the process of building another base as price trades sideways as opposed to trending higher at a steeper rate. So all MACD is doing at this time is confirming the sideways price action.
Keep in mind, MMR is a low volume stock. It trades less than 250,000 shares per day on average. This makes it a poor swing trade candidate. Volume is close enough to the minimum trading criteria that it makes a better long term trade.
If one were looking for a long term entry, buying above Friday's high would be acceptable since the longer term charts favor upside over the longer term.
If money flows are decidedly positive, and they are, and if volume is showing more buying volume on up days than selling volume on down days, and it is, then it's OK to use an anticipatory entry off a moving average or price support.
By the way, I just found the chart I presented for Bearcat Bob over in the Boom Boom Room back in December. Price had been setting a series of lower lows, as noted on this chart, and price was on the verge of breaking above a price pivot.
stockcharts.com[h,a]waclynay[d20041217,20051217][pb40!b20][iut!lah12,26,9][J64970945,Y]&pref=G
Here is the up to date weekly chart:
stockcharts.com[h,a]waclynay[d20041217,20060203][pb40!b20][iLah12,26,9][J64970945,Y]&pref=G
To make a long story short, an aggressive trader may enter the trade above Friday's high, the more conservative trader would want to take out the $21.12 price pivot. You'd be giving up very little to insure that price is willing to move higher by waiting for price to establish a new recent high.
dabum |
