As I said in the other thread three times now we've seen selling to get the SP under 14c. On the 8th, 10th and now 16th of Feb. Each time the SP has been pushed down it has recovered to that 14c level or above. Also, each lower wick on those candles has become shorter and shorter meaning it has been harder for sellers to push the SP lower. The market appears to have rejected anything less than 14c for MNM. 14c is still acting as major support.
I mentioned in the previous post how the 9EMA (purple line) has also been acting as support during this run. Well as we can see, the price hit the 9EMA again today and quickly reversed course.
You can also see that the volume pattern has been recurring - we saw a couple of tight range (only 1 tick) low volume days Tuesday and Wednesday. I was hoping for sub 1m (don't ask me why, I just like sub 1m) but hey 1.2m and 1.05m is OK with me.
I also previously mentioned that the stochs had flattened out and that the MFI had ticked up but that the RSI was ticking down. Well we can now see that all 3 of these indicators are now ticking up.
As far as next targets go it's hard to go past the next fib line given how accurate they've been during this run so somewhere around the 20c mark seems like a good target.
Tomorrow will give all the confirmation that's required and to be honest, we'll get that confirmation either way pretty early on. The volume early on will be the big teller here IMO. Lots of early volume @ 14.5c and higher very bullish here IMO. The scrambling toward the close and in the auction was encouraging on this front.
Take a look at the candle/volume pattern on these days: 18 January 1 February 6 February
Each of these candles were green with the volume being higher than the previous day. The following day, the volume significantly increased again and so did the SP. Time will tell if today's candle can be added to that list. The volume will tell the story.
All these indicators encouraged me to add 200,000 oppies to my holding today but as always I'll be watching closely. I've changed my sentiment from hold to buy. If tomorrow's candle doesn't deliver the goods - it'll probably go back to hold. Except if it's a TH - I don't mind if it's a TH with no volume at all :-)
Confirmation is always required, one way or the other.
Sorry that's so long-winded, hope some find it useful.
MNM Price at posting:
14.9¢ Sentiment: Buy Disclosure: Held
