Weekly support continues to hold In an early post

Weekly support continues to hold

In an early post I wrote about how the last several times the stock has sold int .001 on volume, $MPIX saw a rally not to long afterwards.

http://investorshangout.com/post/view?id=1409...post_name=

The stock saw intraday prices in the trips on high volume, followed by pretty much a dead period of trading. On 10/9 the price hit .001 on nearly 22 million shares, thereby selling into a major low on high volume just like before. However, notice that price closed up off of the lows.

In fact the daily chart shows price attempting to recapture the 20 day moving average.

More importantly however, if you take a look at the weekly chart below, support has not yet been negated. There has been a close below .002, but the weekly chart has not closed below the lows which means that support is still valid.

There was one attempted breakout in late September, followed by the most recent shakeout. Now the stock is right in the area of time where it moved to the 8 cent area last year.

The bottom line for me is that everything in the trading history of the chart tells me that the stock is as low as it is going to get and that we are in the sweet spot time wise for a catalyst. Unless the stock takes out the lows, I will maintain my position just as I maintained it during the mid summer doldrums where we saw the higher low pattern.

[IMG]http://i.imgur.com/S1DLB.png[/IMG]