Alrighty then... MCEL had a nice trading day, with decent volume.
Not sure if I'm still early on this, but it would appear that MCEL is setting up a "Cup and Handle" on the daily chart. Additionally, we're close to seeing the 20 Day MA crossing over the 200 Day MA, which should drag the 50 Day MA up as well. At this point, MCEL should start to really ascend to the $3/share level, IMO:
bigcharts.marketwatch.com
Now here's the weekly chart:
bigcharts.marketwatch.com
Note the Bollinger Band pinch that is forming?? Note the Cup & Handle?
And if you plug in the Volume+ indicator, you'll see that it showed a habit of distribution for two weeks, followed by accumulation. Well, we've just gone through two weeks of distribution and I wager we're ready for an accumulation phase.
Also, note that the 20 Week MA is not very far beneath the 50 Week MA, so any sustained movement to the upside should drag that MA up and prepare it for a crossover, followed by a later cross-over of the 200 Week MA which, if you'll note, is just shy of $2/share. That's not very far for this stock to travel and it should provide support once penetrated.
Finally, IMO, I'm starting to see the stars come into alignment with this stock. Fundamental improvement. New partners with actual contracts who will use MCEL HOD cartridges. Anticipation that DOW will finalize their relationship with MCEL (which, if I recall) involves a cash influsion for stock transaction.
Now.. for the kicker. Change the time parameters on the above chart and set it for monthly 4 years. See that the 50 MONTH MA is just beneath $2/share??
This, IMO, is going to be a GREAT YEAR FOR MCEL!!!
Caveat Emptor
Hawk |
