Wednesday, August 22, 2007

For The Chart Chompers: MVIS

I have realized that this blog has not had enough charts featured lately.

Lets take a quick look at MVIS.

First of all, the stock has held up remarkably well in the downturn. I feel the key point is the volume, or lack of it. It seems the sellers have dried up. If the stock stays at this level for a few more days, a volatility squeeze will be in order.

Another way to look at this is the descending triangle. Typically, these are bearish patterns. However, I think a case could also be made for a bull flag. It all depends on where you want to draw your lines...Ah...the beauty of technical analysis.

Anyway, both the RSI and the MACD are showing signs of a bottom, even though the price is not. I'm going to go out on a limb here, and predict that, due to the lack of sellers and the volume drying up entirely, that news is expected very soon, perhaps within days.

Let me temper that prediction with some rational discourse and state that should support at $4.50 be broken, MVIS could see the 4.20s very quickly, much as I dreamed about the other night. However, I would think that if the sellers wanted to take it there, that they could have easily the last few days. Thus, I'm sticking with news coming, soon.


Crude Broker said...

Great post. Don't let those fuckers give you are a hard time about technical trading. If you are good enough at it (which you seem to be), keep your emotions out of it, you can make good money.

newequity said...

CFC was at 26 yesterday AH and now look at it. Unbelievable I tell you.

micro_idot said...

i have a hard time applying technical trading concepts to this equity. basically it is a prospective looking speculation with valuations based on forward thinking market potential. it is up trending in bull market with a pennant consolidation in a correction environment. beyond that you still need to look only at the upside based on their flagship product which may greatly fill an unmet market need - hand held projection in mobile devices ...

lets face it - whomever hits the small device interface barrier with innovation and it sticks - (think iphone next gen) ... will be big winners.

trying to do tech analysis on this is not wise - either you speculate on the potential or you walk away - that is my honest opinion.



mdawsz said...

Not enough blogging here. I want my money back.