MPI at 161.8% Fibonacci Retracement, will it bounce?

After it broke the possible double bottom at 4.40 last December and another break from the 127.2% Fibonacci Retracement level after holding for few days, MPI is now at the mercy of the 161.8% Fibonacci Retracement level, which if still broken will bring MPI to the abyss.

Interesting indicators are coming out last Friday. Price action creates a Harami pattern which is a bullish reversal pattern. As what candlesticker.com says “The pattern consists of two candlesticks, in which the first day’s red candlestick engulfs the following day’s green candlestick. The first one has to be a normal or long red candlestick. Either the body tops or the body bottoms of the two candlesticks may be at the same level, but whatever the case, the green body should be smaller than the previous red body.” This is not a strong reversal pattern so we need a confirmation the following day via a long green candlestick or a gap up.

In addition, RSI or Relative Strength Index which is at oversold level is now pointing up. If we also look at the weekly chart we could see a Falling Wedge formation.

Ichimoku elements on both daily and weekly charts are still in red but there might be a bounce play for MPI. We are still using the same chart we posted last time at Will MPI hit 4.0?

Caveat!

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felix

A computer engineer by profession and loves to develop online systems/websites. A self-taught stock trader who loves to share his knowledge and enjoys learning, expanding knowledge and staying well-informed. Most often he uses candlesticks, Fibonacci Retracement levels, Ichimoku system on his technical analysis but loves to hear some rumors as well.

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