mrm - chart

Some thoughts on MRM....Someone requested a chart on the Weekend charting thread so thought I might post it here as well.

A weekly bar chart shows price has broken through the top band of an ascending channel. Normally I would suspect a blow off top, but price then consolidated and moved up again on volume indicating that this is simply turning into an accelerated uptrend. See how price bounced off the upper trend line it broke out of and continued up with conviction. Now you could be forgiven for thinking this is leading to a climax top before a medium term correction and this may be true...but it also could just continue up in this new trend for some time yet. This stock is making new all time highs so resistance is virtually non-existant past $3.00.

Theres some bullish things happening on the indicators as well. RSI has broken out of an ascending triangle confirming the new, accelerated trend.

Acc/Dis has been channeling up nicely with price confirming the trend is strong. Note it also broke out of a down trend as price broke out of the flag type pattern on the weekly bar chart. This is very bullish.

Daily stochastics have been favouring the overbought level throughout the uptrend, and also recently broke out of a downtrend confirming the the next leg of the uptrend is looking strong.

To show just how strong this rally has been, have a look at the weekly stochastics. Since the rally started back in November 2008, the stochastics has hardly gotton past 50 which is halfway down. IOW it never got to an oversold state which shows an extremely strong trend. It recently bounced off this halfway marke and is currently trending up in an ascending channel.

On the daily candlestick chart, price has broken through $3.00 resistance on very large volume......$3.00 would have been a huge psychological barrier that IMO has just been blow to bits. Its currently moving up slowly in a flag type pattern, but the flag is going up and not down. This can mean two things. Normally it would mean that price is going to break down out of that little upsloping flag. Or it could be that the stock wants to run so badly that its consolidating as its moving up. Either way if it breaks the flag to the downside, I think it will retest $3.00 and continue up as there is just too much momentum to the upside ATM. Also a retest of $3.00 would be normal and healthy and somewhat expected. Having said that we also had an inside day on the daily bar chart on Friday which can mean a break to the upside, so its a bit of both short term.

So to sum it up, this stock is in a very healthy and what would seem to be an accelerating uptrend. All indicators I can see are pointing to more upside. As I say, there may well be a pull back to $3.00...but then I would strongly expect the uptrend to continue on and head to $4.00 which is the next big round number and the Fib extension of its recent accelarated trend. Also its the projected target from the flag pattern.

[URL=http://img31.imageshack.us/i/mrmweeklyvolume.png/][/URL]

[URL=http://img138.imageshack.us/i/mrmweeklychannels.png/][/URL]

[URL=http://img6.imageshack.us/i/mrmdaily.png/][/URL]

[URL=http://img694.imageshack.us/i/mrmaccdis.png/][/URL]

[URL=http://img6.imageshack.us/i/mrmdailystochastics.png/][/URL]

[URL=http://img696.imageshack.us/i/mrmweeklystochastics.png/][/URL]

[URL=http://img706.imageshack.us/i/mrmrsi.png/][/URL]