Corporate Snapshot METAL STORM LTD ADR SPONSORED
The current wave of accumulation has outlasted all overhead resistance from sellers and driven MTSX to a new fifty-two week high at 11.950. This preponderance of buying makes the stock one to watch for continued upside momentum. Further demand from investors could bring more new highs. The last trade for MTSX was 9.670 on volume of 5,693,600 shares traded. In the short term, MTSX may consolidate briefly before resuming its current uptrend.
"Gaps" occur on charts when the lowest price at which a stock trades during one reference period is greater than the highest price from the preceding period. A price gap is significant to investors in that this can signal the beginning of a new leg in the broader trend or a change in overall direction. The share price for MTSX surged higher at the open by more than 25% from its previous close.
A positive opening gap this large is technical indication that demand far outweighed available supplies. Purchasers of the stock had to bid significantly higher to reach the next point at which holders were willing to sell shares of MTSX. Consult recent company news to see what may have sparked this heightened demand.
Comparing cash flow ratios, measures of debt coverage and company growth reveals that MTSX could be in a questionable financial position relative to some benchmarks of liquidity and equity. This company scores in the bottom half of the market for Fundamental Rank, a composite of popular balance sheet measures. Both fundamental and value-based investors alike might avoid this one. However, the company could be a potential leader of its industry. Aggressive growth for a company often involves incurring sizeable financial risk. Confer earnings estimates reports and projected growth rates to see what industry professionals expect in the years to come for MTSX.
The Moving Average is derived by calculating and charting a stock's average price for any specific time frame such as 10-days, 50-days or even 200-days. This Average is called "Moving" because it is updated daily with the closing price for the most recent session replacing the oldest value in the data set. When plotted on a stock's price chart, this technical indicator provides a reference point for analyzing trends and performance.
Given its positive divergence of greater than 10% from the 200-day moving average line, MTSX could be either in the beginnings of a new long-term uptrend, or consolidating near a point of major technical support. This divergence could be indication of growing momentum if the stock has recently posted big gains, or long-term strength if the stock has pulled back and held near its current range.
MTSX is currently trading some 10% higher than the 50-Day Moving Average Line. This is indication that the stock has been in demand with investors within the past ten weeks. If MTSX has recently broken above this intermediate term indicator, then a new uptrend could be underway. However, if the stock has pulled back or consolidated off of recent highs, watch for decreasing volume and volatility as indication of strength in its current trend. Also, watch for MTSX to hold above the 50-day line as confirmation that the current uptrend remains intact.
MTSX has exhibited short-term momentum as implied by its positive divergence from the 10-Day Moving Average Line. Be advised that a pullback or consolidation on profit taking could soon be in order following any additional gains the stock might post in the near-term. If MTSX is also above its 50 or 200-day moving average line, this is technical indication of a long-term uptrend for the stock.
Monitoring a stock's price in relation to its moving average lines is an effective means of understanding the dynamics of its price trend. When considered with other technical indicators, moving average lines offer powerful insight into price movements. If MTSX is below its 50 or 200-day moving average line, the stock has recently been down trending and the break above the 10-day line could be first indication of a possible recovery.
10 Day Moving Average 50 Day Moving Average 200 Day Moving Average
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