MPIX consolidation off bottoming tail continues
A bottoming tail is a candle formation in which there is a long tail but the price ultimately closes in the top 25% of the candle. When this appears at the lows of charts at a major support level, it gives a high odds chance of a move back up. When there is a subsequent candle that closes above the high, it increases the odds that it will move back up.
In the current formation of $MPIX we have the following factors:
1. Bottoming candle on 9/5
2. Major support at .002
3. Subsequent candle closed above bottoming candle high
4. Double bottom from mid July
5. Bullish inside bars consolidation for the last 3 days.
The 9/7 21.89 million share upday can be classified as a bullish move. The fact that this occurs at the lows of the charts signals that a follow through move is near. The last few days have been very light volume. Typically bullish consolidation takes at least week to get moving, and requires some heavy volume to blast it off.
What we are looking for in the immediate term is probably another week of consolidation, and then for a close above .003 to signal that the bullish move is back on. MPIX will need to recapture the moving averages, which will most likely give some level of resistance initially unless of course the news catalyst is so astronomically good that the stock gaps over to the .004 level.
Base case though, expect to have to fight for every fraction of an inch.
Bottom line, we are in the window of time for a move. I expect for the move to start by mid next week. I have no idea what is coming down the pipes from management as far as PR's are concerned, but I do know that their timing of the releases favor the 18th and usually the 2nd half of the month. In addition, this is about the period of time that sparked off the rally up to 8.5 cents in October of last year.
Anything under .003 is a bargain, so keep accumulating while it is still cheap. You have a bit more time to do so, then hang on to your hats.
[IMG]http://i.imgur.com/qDG3o.png[/IMG]
