mqg - chart

Some thoughts on MQG:

A weekly bar chart shows an ascending channel with a recent break throught the upper channel resulting in a typical blow off top - all thats missing is massive volume but the principle is still the same - an exhaustion of buyers. This often happens on a break of the upper band of a channel and its always a good idea to wait for a stock to base first above such a break to see if it will hold. Also note how price has been finding support around the 10 week EMA and a failure of that was a bearish signal before the actual trend line break which was confirmation.

On a daily chart it made a nice little lower low (a good shake out) recently then bounced off horizontal support.

It looks like price has found support on a horizontal support line at $45 with a strong bounce last week on volume.

Acc/Dis has broken the bottom trendline of an ascending chanell giving confirmation that the trend is changing. Not necessarily down, but possibly sideways or down. A break of $45 would signal a new down trend.

I dont know how clearly you can see the daily sotchastics, but they were very low bottoms on the decline and since the bottom of the decline in price was hit, stochastics havent been getting as oversold. The area is marked with two vertical lines showing the bult of the rally. Now we have stochastics dropping back to a mega oversold area again.

Weekly stochstics is also showing a break down of a an uptrend line indicating the trend has weakened.

RSI broke its uptrend around the same time as the blow off top.

All in all its been a good strong rally, and one I would have liked to be in. I wouldnt be surprised if this just consolidates sideways and then continues up, all other things being equal. Perhaps a trading range between $45 and $55 until it can find the legs to keep going. A break of $45 would signal a down trend.

[URL=http://img710.imageshack.us/i/mqgweeklyvolume.png/][/URL]

[URL=http://img5.imageshack.us/i/mqgweeklystochastic.png/][/URL]

[URL=http://img51.imageshack.us/i/mqgstochastics.png/][/URL]

[URL=http://img710.imageshack.us/i/mqgaccdis.png/][/URL]

[URL=http://img705.imageshack.us/i/mqgdaily.png/][/URL]

[URL=http://img705.imageshack.us/i/mqgrsi.png/][/URL]