Keystone entered MITL today, the falling wedge and positive divergence was too compelling to pass up and price bounced at the close. Upside targets are 4.75 (20 MA and resistance), 4.80, 5.00, but, as always, take the profits if they are there, you can always reenter on a pull back. The weekly chart is constructive, unlike many other stocks and indexes that are showing positive divergence for the daily chart but the weekly charts are weak. Therefore, this increases the liklihood that MITL should have the gusto for some higher numbers moving forward. Stochastics went above 50%, watch to see if the RSI does. MITL is a less liquid stock so this increases the liklihood of wild swings. MITL hosts its Analyst's Day on July 6th so the stock should be jumpy into next week. This information is for educational and entertainment purposes only. Do not trade based on this information. Consult your financial advisor before making any investment decision.
Internet Banking
ReplyDeleteThe weekly chart is constructive, unlike many other stocks and indexes that are showing positive divergence for the daily chart but the weekly charts are weak.
That went over Keystone's head Poras. Internet banking? On the charts, always reference all the chart time frames, daily and weekly charts at a minimum, you can use the minute charts for timing entries and exits, monthly charts for LT investing. Current markets show positive divergence pops, which now occurred over the last couple days, but the weakness on the weekly charts will take over again.
ReplyDeleteMITL, and some others, such as MOTR, are more constructive with their weekly charts, thereby making them more attactive as potential long plays with some legs rather than quickie day trade or ST longs such as the indexes now.
If you only base your trading on daily charts, you may enjoy some buoyancy, only to awake one day a couple weeks later to see all the gains evaporated--since the weekly chart projections took over.