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Registered User
Joined: 12/8/2004
Posts: 11
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This came up yesterday. I tend to shy away from low-priced stocks, but this pattern looks great to me. Broke out above $6 and looks like a fairly easy run to $8. Any comments?
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Registered User
Joined: 12/2/2004
Posts: 1,775
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daleji, couple things I don't like about the chart. First, I do like that it broke out of three month resistance and is trading above both 50 and 200 MAs. What I personally don't like is the huge move it's made this month...the stock trades thin and scares me into thinking that sellers may lock in profits take it down fast. I would like it better if it stabilized here and built a longer base to maybe launch from in future. But what really popped out at me is the longer term downward trendline that it's bumping up against right now. Go to a daily chart at zoom 2 and draw a line starting with the March 04 high and connect to today's high. There are some traders who don't put much stock in trendlines as such, and of course one needs to consider their time frame for holding a position and what their target is. If MVIS does keep going and breaks the trend line I reference, then I guess 8 would be a logical target at Dec. highs. Just an opinion from an average trader who always loves to soapbox. good luck.
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Registered User
Joined: 12/8/2004
Posts: 11
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Great obsevation about the downtrend line. However, it broke through it on increasing volume today. A good sign!
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Registered User
Joined: 12/2/2004
Posts: 37
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Good comments by fpetry. I'd add: Downtrend (closing prices) & 50SMA pierced on 5/3/05 with respectable volume. Hasn't blinked since. I agree its a buy - hard 5% stop, don't trail it due to volatility. Big up may be result of heavy short interest (21+). If all short interest hasn't been cleared by now, may give a boost here.  Some congestion ahead between 6.61 and 6.85, once clear open waters to $8. Although low priced stock, AVGV50 is not skimpy. It's certainly worth some play.
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