MP Systems Corp. (formerly Molycorp) Message Board

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Gold/Mining/Energy : MP Systems Corp. (formerly Molycorp)

MCP 30,550

-6.9%

Nov 5 4:00 PM EST

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To: feedmindanaochildren who wrote (51)	3/1/2013 3:40:29 PM
From: sense	Read Replies (1) of 111

Being an inveterate bottom fisher... perhaps I tend to view "falling knife" charts more fondly than you do ? If you think of really ugly bad charts as good... then you can find hints of hope in the MCP chart... but, I agree with you that there's obviously not much more than that in the chart in the short term. There's a major issue of timing in forming a viable technical bottom... which will at least make the next couple of weeks interesting to watch. The weekly chart is a big reverse pincher.... ADX has already started to move higher, share price has already started to move lower, and the MACD is lagging... not yet having rolled over enough to have crossed the indicator line... but, it's pretty hard to see how that can be avoided given the dynamic in the trade... I have little doubt that the MCP chart is telling us that MCP is likely to make a new bottom "soon"... probably in a matter of weeks... The key question is... how violent will the next leg down become ? Will it be a dynamic move or more of a slouching into ignominy type of a move ? Yesterday, it broke right on through the support provided by the prior bottom... leaving a lot of unexplored chart territory below the current price... which tends to suggest more accelerated dynamics are likely. There's clearly a lot of "hope" in the chart... that the current price will form a bottom... which seems a decent mirror of your own expression of opinion and uncertainty... But, the daily chart shows it riding the rail of the lower bolly down... with MACD negative and moving lower... And the weekly chart says it will be a few more weeks of more of the same before there's much probability of change... with the reverse pinch and the lagging MACD roll over... Given others obviously conflicted feelings apparent in the chart, now, I'll be patient, and, given another look in a couple of weeks... I think it might be worth looking at to see where it's going to be finding that bottom... As in other things, I think "contested" charts tend to result in incremental moves in continuation patterns... while dynamic charts tend to generate bigger moves... and more dynamic movement in both undershooting and overshooting in the adjustments made... And, that's the question I see here... is about timing, and about how dynamic the chart will be over the next few weeks... I don't see a reason to want to put money at risk in the time period in which that question is resolved... When I see the chart indicators align to point out "a bottom" with little to doubt... I'll consider it for a trade.

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