First I want to again reiterate I am not a holder of this stock. But I have monitored it for a long time and had a position a few years ago so I understand the company and am familiar with its patterns. But that actually is not necessary. I've been updating my personal chart analysis because my friend told me he was invested and believed in the company, so I took interest with wanting to provide assistance for his benefit.
So- for just a minute, disregard the chart. There are multiple ways to determine whether a stock is legit or not. I keep hearing about earth shattering news (mostly banter and hopes). It may happen, but always look at the facts.
Since July 7th, this company has had 11 news related events in addition to filings, with an average of 2-3 days between events. The share price during the same period sunk from 4.66 to 3.16 (low of day today). This represents a decrease of -32.18% over a 'busy' period of news offerings by the company or other related sources after it saw an increase of roughly 2,470%. In all my years of trading (15+), there has not been ONE instance where a company released a series of news after a extreme price run-up like $MGT experienced earlier this year where the share price appreciated to the lengths some people suggest here (10$, 100$ etc)... And I have traded literally tens of thousands of stocks over the years. Not one.
So FWIW, consider this indicator of news releases and corresponding price action and ask yourself, "Why" "How" etc...Now look at the chart again and the analysis provided. It has bled slowly as I suggested and is dangerously close to touching that fresh albeit weak support and understand it has already ran approximately 2,470 % in the last six months on ZERO increases in revenue or fundamental changes that lead to revenue potential in the next year. Therefore, whether you are long or a day trader, any reasonable person who has any experience in stocks or trading understands the pressure will remain on top to push this down and in the event the chart indicators align with this pressure from above (it does currently), this is an additional indicator spelling disaster for this particular stock, so you should align your strategy with the direction of the trend. There are no benefits for holding long. If you sell and then buy again, you won't pay capital gains tax unless you profit more than 400k per year. A trade is a trade which will be charged as ordinary income based on your tax bracket. A trade is a trade. Don't take my word for it, consult your local tax professional. Just FYI- the capital gains tax is 40% regardless of the amount over 400k but you continue to pay the average income tax (25-28%) regardless if you hold it 3 days or 2 years. Use the time to your advantage.
Good luck
SOG
