MPI: Traders in equilibrium, Doji candlestick at the top of the trend

MPI opened at 4.65 and close at 4.64 and during the day we saw how the bears and the bulls try to take control over the stock but they ended up in equilibrium. Looking at the chart we see the indecisiveness of the traders. This can be considered a bearish signal since it happened at the top of the trend. But because Doji is a weak reversal pattern, we need to see a large red or a close below the low today so as to confirm its bearishness. Absence of such will bring the price up and complete breaking from the channel. Some traders may say its already a breakout but since we have a doji then the breakout is a weak one.  In case MPI will correct, I think it is an opportunity to buy at the support line.

On our weekly chart, we have already accomplished the 4.65 target.

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.

One Response to MPI: Traders in equilibrium, Doji candlestick at the top of the trend

  1. […] been going down and is near the lower slope from the time we saw some bearish signal last Feb 20 (MPI: Traders in equilibrium, Doji candlestick at the top of the trend). What we are going to do now is to monitor MPI closely once it hit the lower slope. A bullish […]

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