Saturday, January 27, 2007

MRX Analysis for 01.27.2007

Monthly chart shows the stock has been stuck in a trading range since September 2000. After finding support off the $22.60 area, the market made a .786 fib retrace of the last move down from $45.26 area high. The price has not been able to advance above this current high for the past 3 months. January continued to see buyers however, trying to take stock price higher.

The weekly chart shows the heavy resistance at the $40.40 area high. Last week's price action shows up as a spinning top/doji, indicating indecision of the traders.

The daily chart shows more clearly the strong resistance at the current $40.40 area high. We now have 2 bearish engulfing patterns against the current resistance. Sellers came out in force on Friday. Buyers gapped it up at the open, but were immediately met with sellers, who drove the price down to close near its lows for the day. The price action on Friday took out the low of the day before. Look for continuation next week.

No comments: