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Registered User
Joined: 12/2/2004
Posts: 1,775
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MEA has a cup with high handle pattern. Note the excellent green volume last two days. A buy signal of 14.34 was given yesterday as price moved above handle's high on nice volume. It retreated a bit but setup still looks good imo. Another positive is fact that price is making new all time highs yet it's not extended. Also as price moves into the mid teens it starts to attract more potential high quality institutional buyers. A warning though as this stock can be somewhat volatile with wide ranging daily price fluctuations. MEA is a Steel stock (Metal Proc & Fabrication Group) and is rated #1 overall in its group of 41 stocks per IBD. As with any long setup it certainly helps if overall market is in bull mode, and that is looking borderline currently. Regardless, worth watching closely I think.
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Registered User
Joined: 5/8/2008
Posts: 2
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What's a good buy-in point for MEA?
I am looking for something with fairly fast growth...
Pretty new to all this but would like to jump in and try
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 Gold Customer
Joined: 11/11/2006
Posts: 359
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Scottabshire:
Welcome to the Forum. Scroll back thru this Stock and Market Talk and the Ask a Trainer and read everything you can.
That being said, and given that I never give advice, MEA is still within the buy envelope, though not by much. If it opens higher Monday, It would most likely be a safe bet. If you have no other exit criteria, a likely exit would be the roughly $14.00 or so. It is likely that a drop below this support line would signal a failed Cup with Handle formation.
This high of the Candle on 4/17 was the resistance level. That would act as support from this point.
The next level of support would be the previous highs of Oct 07 and Feb of 08. This level of app. $13.00 has acted as support during the recent drop. It was penetrated, but not by much and not for long. (as with trend lines, penetration should not be much, and it shouldn't linger)
A point of concern: You will note that MACD-H (12-26-9) has not followed the raising price. If you compare the MACD-H high in Mid April with the MACD-H now, it has a clear divergence. Price is moving up and indicators are not.
Stochastic(22-8-8) nor RSI (14) have followed price, either.
The Industry itsself is at a point of trendline resistance. Monday should tell.
I am sure others will pitch in with a helping hand.
FPETRY has a good eye.
Best of luck.
MAMMON
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Registered User
Joined: 12/2/2004
Posts: 1,775
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scottabshire, poster mammon offers good guidance and I agree with his assessment that a close below the 14 level would signal a failed breakout. Only advice I offer is that if you do decide to enter at some point your number one priority should be to select a stop/risk level before the buy and to have absolute resolve to sell if stop price is triggered. MEA has a small float which could lead to some wild swings now that volume has kicked in and folks are noticing, but which may offer new decent entry points. But don't dwell on MEA, use the powers of TC to search for other stocks quietly setting up to place on your watchlist. That way you'll have stocks sitting right in front of you on your streamer so you'll immediately see price/volume signals that will allow you to get in early.
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