Registered User
Joined: 12/2/2004
Posts: 1,775
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Note the month of August how price pattern for MERC was horizontal and honored the 50-day exp on half dozen tests. What's really impressive imo is how MERC held its ground vs. the market. Look at any of the indexes for August, all horrible and violent..
On Friday price surged above a firm 3-week resistance on best volume in over a week. Several resistance areas not far above, but maybe Friday's little spike was early signal.
A positive divergence is the rising OBV for August as price traded sideways. Other indicators I monitor remained basically neutral for the month.
Bollinger Bands come into play here as price closed above the top band, standard setting. Place the Bollingers on your chart and note the tight squeeze and pop, the tightest for about past year I believe. My last Bollinger note was for GY early August, but it was a bust, maybe this one will fare better. One of the reasons for watching the bands is to consider a close above the top band as a chance to catch a move early and not waiting for a literal numerical breakout of a high, which would be above 5.56 for August. That August high plus a nickel or so could become a second signal for adding to position.
In past year MERC's personality shows potential for fast high percentage swing trades (see early Feb, early March, mid July).
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Registered User
Joined: 4/10/2006
Posts: 954
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Looks like one I am watching (cond buy 6.20) SQNM. Yours has a little better uptick.
However, I have greate skepticism on the SP500 breaking 1125-1150, therefore skepticism on these breakouts yielding a significant gain.
The last 3-4 days have been nice for longs but I am unsure of any real strength here. I would love to jump on board heavier long....but I believe I should be looking for spots to take the gains and look for short either this week or next.
any way that is my read, this day,hour,minute,second, ..... will change if sp500 breaks out.
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Registered User
Joined: 12/2/2004
Posts: 1,775
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QUOTE (wwrightjuly4)
Looks like one I am watching (cond buy 6.20) SQNM.
Jeez, I like SQNM a lot, thanks for the post, it goes on my prime watchlist this morning. And I think PCYC also has similar chart to these two...I've been watching it forever but it's up like five days in a row, hopefully it'll base or flag a few days and offer a setup I like. Your take on the market and how to play longs sounds very wise; this is an extra tough market to trade for anyone lately except maybe the pure daytraders. I'm basically in your court, no big position sizes here, tighter stops.
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Registered User
Joined: 3/21/2006
Posts: 4,308
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All three stocks are consolidating at previous resistance levels-(weekly chart) in these uncertain markets it is best to buy off support rather than resistance.. Use caution with these if you are waiting for the break-out....
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