Medinah Minerals (MDMN)

[Hurricane_Rick]

Hey Ex,

On pull-backs like these, I generally target the 50% Fibonacci retracement level as a target area...all things being equal. From .012 to .0245, that is just around .018. That level looks to coincide with a nice rising 50MA currently around .016 and a 20/50 crossover as well. As you pointed out, the momentum indicators aren't in a desirable area right now, but if the price drops to the .016-.018 over the next couple of weeks, I could see the Stochastics, MACD and RSI entering a more favorable area to take a trade on.

IMO, the best trades (read: highest risk/reward profile) are made when you have at least 3 charting factors in your favor:

1) Horizontal Support/Resistance
2) MA Support/Resistance
3) Pattern recognition
4) Oversold momentum indicators (MACD, RSI, Stochastics, MFI)
4) Price vs momentum divergence
5) Volume

You can throw the bollies in there as well, but I use them more as a signal than a mitigating factor in my trades.