Chartseer...I had to go to DWA to get a chart on MIFGY as the stock does not trade options and is therefore not in my Chartcraft chartbook.
The break of the BSL for MIFGY came too late in the game and to alert holders of impending disaster. The BSL was broken at $27 in August, and, at the very least, warns of dead money for some time to come.
The stock looks tradable now with a long tail down pattern having formed with the reversal at $24. I know you strongly believe that former support becomes resistance, and the old BSL, now at $29, could cap this trade.
MIFGY gave two big warning signals with a HPT in March at $53, and a High Pole at the Bearish Resistance Line (HPB) at $47 in May. If holders didn't take those ominous signals, surely, the quad bottom sell at $38 in June should've been the exit point. To cap off this extremely bearish chart action, the stock had a Bearish Catapult pattern at $31 in August that brought the stock down to it's low of $21.
A buy in MIFGY at this juncture is a bet that the bad news is over (what was the fundamental story that caused this debacle anyway?) and the long tail down will lead into a low pole buy at $32 and signal a shift to demand for the stock.
What do you like about the stock, Chartseer?
Your pal,
Bruce |
