Today is turning into an upside orgy day for the bulls. Keystone has been watching Mohawk since an executive did some insider buying the other day. Timmy and Rancid had mohawk's. The 2-hour chart sets up with universal positive divergence, and the falling wedge pattern (bullish) and oversold conditions, so the bottom was bot. It pops right now and should be sustainable. If it does come back down that should just be to confirm the bottom.
The daily chart was set up with possie d but the MACD dipped slightly so there may be some more sogginess for a couple days. MHK has fallen a lot so even a dead cat bounce should be in order. The weekly chart is not yet at its bottom since the RSI and MACD remain weak and bleak. Thus, if she runs it is a quick trade higher for a few days, and then ditch it. Price will likely come back down again to test the lows 1 to 3 weeks out. That will be a nice low to buy since it will likely begin a multi-week rally higher.
Of course as Mike Tyson says, "everyone has a good plan, until you get punched in the face." Mohawk is into flooring products and the spring construction season is starting. Maybe Keystone should finally replace the dirt floor? Naw, things look fine the way they are.
So MHK is played for a rally that started or will in a day or two, and run for a few days, but the weekly chart will want price to roll back over again. So any long trade can be ditched and then wait for price to come back down to buy it again and if the weekly chart indicators are all possie d, the rally will be sustained for a few weeks.
If a risk-averse trader, you can simply wait 2 or 3 weeks to see if the MHK weekly chart is ready to run and jump in then. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
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