MTR had violated it’s supply line ( resistance line of the down trending channel). A significant bullish development which needs to be validated with a follow through over the coming sessions. Should that be the case ( follow through), the broken resistance will now become first support at the zone of $3.40 followed by medium term support at the zone of $3.05.
OBV ( On Balance Volume) at the bottom window had an earlier breakout which is supportive of this bullish move. Volume and price action in sync.
From the beginning of this trade, I have taken a medium to long term view in pursuit of capturing the next potential major up leg. My prior analysis was indicative of potential accumulation pattern, where my entry was straight after the failed support break, which I am treating as potential Wyckoff Spring.
Over the coming days/weeks, should things unfold as anticipated, I will then take a horizontal PnF count of the basing pattern for a tentative bullish price objective. So far, I have a valid but not active count which yields a tentative bullish price objective of $4.78 !
I will publish that count, over the coming days/weeks once it is activated.
For now, sitting tight is what I intend to do with MTR, as long it keeps doing what is expected of it.
Disclosure : MTR held.
Daily MTR chart as at 15:00 hours update 20/10/2016.
All the information and analysis provided on this website is general in nature and for educational purposes only and does not constitute financial advice. No content in any way implies a recommendation to buy, sell, hold or short sell any financial instrument, nor is it financial advice.
Investing and trading in financial markets carries considerable risk, and should always be done in consultation with a licensed financial adviser taking your personal circumstances, financial situation, objectives and needs into consideration.
Links to other websites are inserted for convenience only and do not constitute endorsement of any of the material on those sites, or any associated organisation, product or service. Kazim Agaoglu is not responsible for the content of any site owned by a third party that may be linked to this website and such links are provided as a courtesy with no judgment or warranty being made concerning the suitability, accuracy or otherwise of the content on any such site.
Kazim Agaoglu disclaims any undertakings, warranties or guarantees, express or implied and shall not be liable for any loss or damage whatsoever arising out of in connection with the use of or reliance upon any of the information on this website. The user accepts sole responsibility associated with the use of the material on this site, irrespective of the purpose for which such use or results are applied. The information on this website is no substitute for financial advice.