MPIX closed above 20 DMA signals breakout
A few months ago we had a pattern known as a higher low support which consolidated for a while. I made the call back then that a close above the 20 DMA would signal a move higher, and higher it moved.
MPIX recently retested the lows as the bears attempted to demolish support lines and trigger panic selling. However, on Friday we saw a close back above the 20 DMA.
I've been saying that I thought the lows were in, that we would be looking for a subtle change in character in the tape, and that October is the time cycle that best fits the profile for a move back up. I said October matched up well with last year's move up to 8.5 cents, and that this stock seems to really like anniversaries because it put in a low at approximately the same time period as the rally began last year.
We are also coming into the 4th quarter, which is traditionally when lots of things start to pop for businesses as they try to jam things in before the end of the year. We already know that they have a relationship with an IB, and they just made a leadership announcement last week. They tend to release news in the 2nd half of the month, and have really stock moving news released in the middle of the month.
If you line all of these factors up, these next two weeks could be setting up for one hell of a breakout timed for mid to late October. Remember back during Labor Day where I candidly told everyone that things would be kind of dead in the near term, and that you may have to look for late September/October for a move. We are in that window of time right now.
I have no idea what specific news or catalyst is coming down the pipe, but the charts are telling me something big is about to pop. We could see nice pop to 2 cents initially, which would be my guess, and we'll have to see what else they have up there sleaves to see if it can revisit the October 2011 highs.
[IMG]http://i.imgur.com/KwYMp.jpg[/IMG]
