$MPIX weekly chart shows window for move As a pat

$MPIX weekly chart shows window for move

As a pattern chart trader, one of my favorite things to watch for in a stock is cyclical behavior. That is how I originally called the lows in MPIX back in may when it was getting hammered under .002 intraweek.

About this time last year, 9/12 to be exact, MPIX began to break out through the 2 cent resistance level. It actually closed the week at 2 cents on the money, the highest close for the stock in years. The week of 9/19 it actually broke through on a closing basis. The following 2 weeks there was a shakeout, and then up it went to clear 8.5 cents.

MPIX is now in the window of time where it should start to make a move. I'm not saying that it will make a move this week on the money, but the bias in the direction of the stock should be upwards. What we are looking for is a close above the 20 week moving average on a weekly basis. If the stock can close above the blue line in the chart below, then it is showing strength.

It has already been to those prices in the .005 range recently, and has battered the moving averages a few times so it should be a weaker resistance area this time around.

My base case expectation is that price should start to trade back through the 20 WMA in a not so dramatic fashion, and manage to get a few closes above it. This should signal a change in trend for the trend followers, and I bet it would also coincide with a news catalyst, which MPIX generally releases in the second half of the month.

Should we even get a close above last week's high I would actually be content with this week. Once MPIX clears the 20 WMA watch for moves to 1 cent, 1.5 cents, and 2 cents on the near term horizon.

[IMG]http://i.imgur.com/8xCrj.png[/IMG]