MPI needs support

MPI fell by almost 8% today following the news “MPI, MWC: Maynilad and MWC water rates to be cut; Companies ready to go into arbitration”. The quesion is, will it bounce tomorrow? Or those you got some MPI are catching falling knives? Based on our chart it showed that the current price is somewhere near an immediate support but may extend to 76.4% Fibonacci Retracement level. The long red candlestick which is called Marubozu does not really tell us if its going to reverse or not but there are a a couple of reversal patterns that starts with a long red candlestick. Let’s see what will be the formation tomorrow.

By the way, if the horizontal line will fail, the lower slope of the downward channel may act as a backup support. See how the price move withing the channel?

Caveat!

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