Kijun Sen cross on MWC

MWC has been registering higher lows since it touch the 20.35 per share which we considered our bottom so far. Bringing up our fibonacci setup we could see that 23.6% Fibonacci Retracement level or around 25.32 will be MWC’s immediate and strong resistance. This area has been tested a lot of times already and so far bulls are not successful. Last week we saw a weak bullish signal coming from the Kijun Sen cross. This is where the price crosses the Kijun Sen from below. It is considered weak because it happend below the Kumo or Cloud.

This weak bullish signal will be fueled if price will breakout from the immediate resistance because if that will happen the Chikou Span line will move above the price and will register another bullish signal. But that remains to be seen. I think it is still ok to hold MWC and wait for the breakout. For those who want to get some water, wait for the breakout.

Based on the 10-period RSI or Relative Strength Index this stock is not yet overbought.

Caveat!

Leave a Reply