Red, I am responding to you as I do not know yet how to post a general message to the discussion group ! (my first message at SI)
As identified by most of you on this discussion group, the fundamentals on MCF are quite good and the potential for improvement is great.
I just want to share some of my observations regarding the technical aspect of MCF
June-Sept 1997 saw a Consolidation pattern in the 0.80 to 1.30 range as seen on a 2 year daily, semi-logarithmic scale.
A breakout on heavy volume took the shares in the 4.00 area.
December 16 1998 - January 15 1999 saw a Consolidation pattern in the 1.00 to 1.30 range (very close to the 1997 area and around a brief support area set in the down trend in July 1998)
A breakout on very heavy volume moved the price in the 2.50 area
It looks now as a new Consolidation pattern is forming on a diminishing volume - perhaps a Flag or a Pennant in the 2.50 to 1.80 area. Those Consolidation patterns are characteristic of fast moves.
Now, … the market will tell us what comes next, but if a breakout on heavy volume takes place, a minimum measuring formula would indicate a move comparable to the one that took the price from the previous breakout. This would indicate a 3.75 price area.
If, on Monday, we see a dip in the 1.60 area, the pattern would still fit the Pennant Consolidation pattern, subject, of course, to a confirmation breakout.
Correct me if my interpretation is incorrect and let's see what next week will bring.
Happy trading !
John |
