MFNX...excellent work, John, though my take is a bit different. See what you think:
MFNX-33 1/2, down, current trendline support at about 33 from lows of mid-May, short term declining tops line from July highs to about 37, longer term declining tops line from March highs to about 40. Additional horizontal SP at about 32 (your 31 1/2 is also fine), minor SP at 30, major SP at 25. I agree with your RBOPs; I have a minor one at 41 and two more significant ones at 45 and 53 (essentially the same). Both slow-moving stochastics and macd are trending down towards OS territory but are not there yet. Therefore, the short-term trend and bias is still "down" but this could change very quickly.
Analysis and strategy: MFNX is currently near the apex of a wedge formation, the area of 32-33 is an important area to hold while downtrend lines, currently at 37 and 40, need to be broken to the upside to start any sustained upmove. If I owned MFNX I'd protect myself with sell stops below 31-32. New positions for conservative position traders should be established in stages...one position now at or near SP area of 32-33 (preparing to exit quickly, if necessary), and additional positions on trendline breaks at 37, 40 and other RBOPS (42, 45, 53). Partial profits can be taken on reversals back through any RBOPs.
All in my opinion, of course, John. Sometimes I print the charts out and draw in lines by hand. More often I just hold a straight edge up to the computer screen! Our difference of "up" versus "down" is semantic, relative and not hugely significant in this case. I say "down" because of the immediate presence of the DTL and the negative stochastics and macd.
Of far greater importance is whether MFNX holds that 32-33 area and then moves to take out those DTL's. This will be resolved, one way or the other, within the next several days. As a position trader, the trick is to be prepared for either event.
Again, excellent work, John. I appreciate your putting me through my paces on that one!
Regards and good trading,
Mark |
