Lows tested and passing so far
One thing I pretty much count on during the bottom formation process is the testing of a low. Trading is always an ongoing struggle between the bulls and the bears. The bears try to push the stock down, and the bulls try to push the stock up. Where the price untimately ends up decides who was the winner or the loser.
For 3 days in a row the bears pushed MPIX way down intraday, but the bulls ended up winning by closing the stock back up in the to 25% of the candle. This is like a game of football. The line of scrimmage moves during the day but at the end of the day, the final print shows who is gaining ground.
Consider this a goal line stand at the lows. The bears are unable to punch through and make lower closing prints and the bulls are repelling them. Unfortunately for the bears there is no field goal attempt in this game and bulls will eventually takeover on downs with possession of the ball in our own endzone. Now it would be great to score a 77 yard bomb but expect a few runs between the tackles and a screen pass in order to maintain grind out some yards.
[IMG]http://i.imgur.com/dXV63.png[/IMG]
