For those chartists out there - MNS chart is again at an interesting short term juncture. We either see another bounce off from here (possibly that strong bounce and re-rate that many are expecting), but we may also see the near term trendline broken in which case a low below the $0.34 that we saw on 17th Oct would be expected.
I am currently of the later view simply because the chart activity since that October low looks quite "corrective" in nature - by which I mean, a messy and overlapping chart pattern (no clear impulse waves), suggesting that what we have been seeing over the past 2 months is an upward corrective phase to the decline through September into mid-October. If it does break to a low, I suspect it will be a drift on low volumes over the next week or so rather than some significant sell-off, which would then set up a MACD divergence signaling completion of a long corrective phase to the run up from $0.27. If this does play out, it would set the stage for a potential strong bounce as we begin the next movement up. I do not expect this to test below $0.30 if this downside scenario plays out.
If it does bounce (rather than drift lower), I would be wanting to see a definitive push beyond $0.50 to confirm that we have begun the next upward impulse movement in the stock price.
As always, DYOR. This is not investment advice, but just a near term view of the possible outcomes to the "fork in the road" that we currently sit at.
(20min delay)