Asleep at the Wheel

[rich pearl]

MLHC chart/fibs follow-up

as noted in the linked post, this has been playing to the Fib extensions from off the retracement. the candles of the last two days were from .002-.022 and .0019-.0022, or, more apt to the analysis, averaged out as .0021 and .00205. the Fib61.8 was .0021. the fact that it didn't average up suggests a retracement. so....

in talking with Mr. Fibonacci i told him i saw a run begin at .0008 -- though it bottomed at .0007, it closed that day at .00108, and then pulled back to a bottom of .0008 -- and from therein it went to the top of the highest candle, which was .0022. if a retracement is in place, where did Mr. Fib say it would go?

fib 23.6% .0019
fib 38.2% .0017
fib 50% .0015
fib 61.8% .0013
fib 76.4% .0011

iow, todays low of .0017 was a perfect fib. should this continue to play to the fibs, it will prolly test .0015, or even .0013. given the volume, or lack of its excess, i consider this to be a very healthy low volume retracement.

anyone wondering why its healthy? very simply put:

1. it nails down the base for a higher platform. this just ran from .0008. if the pullback is to .0013 or thereabouts, isn't that a higher base?

2. it keeps the chart from being overheated. lessens the reasons for system traders to sell.

3. it exchanges traders who bought lower for traders at a higher level. those who bought low are more apt to sell. hence the term 'stronger hands'.

4. it washes the range. notice the dwindling volume?

5. and, lastly, it gives accumulators the opportunity to... yup! accumulate.

now a look at the chart.

i'm beginning to think the pattern is that of a pennant off of the pole. its a continuation pattern. the confirmation of a strong uptrend was in the lining up of the moving averages. today this closed on the 5ma, currently at .0019. a hold of that support would be a another indication of just how strong this is; but, in trading at .0017, it pierced the support and approached the 10ma at .0016. i suspect there will be a test tomorrow of that support line. it could even test the 20ma at .0015. this, btw, does not represent a breakdown on the chart. fact is, these are the kind of technical tests a stock goes through on its way up. every bounce off of the support builds a bigger base at that point. this is why one so often hears the terms double bottom, triple bottom, and so forth.

one last note: the volume tells a tale. the retracements and bounces here
are all happening on lessening volume. iow, this is the consolidation period. for this to be a sell-off, the volume on the way down would have to spike, and you'll know that's it dilutive should the price retreat on ask trading. at this point in time, that is most unlikely. but, hey!!

** just a side note, i'm more than willing to discuss or have my analysis
critiqued. but the majority if ihub-ers, for all their talk, don't know much about research. find me if you can! you're welcome to come here **

https://www.barchart.com/stocks/quotes/mlhc/technical-chart?plot=CANDLE&volume=total&data=DO&density=L&pricesOn=1&asPctChange=0&logscale=0&indicators=SMA%285%29;SMA%2810%29;SMA%2820%29;SMA%2850%29;SMA%28100%29;SMA%28200%29;BBANDS%2820,2%29;PTP%2850%29;BOLLW%2820,2%29;RSI%2814,100%29;RSI%286,100%29;SMACD%2812,26,9%29;PPO%2812,26,9%29;ADX%2814%29;WILLR%2814,40%29;STOSL%2814,3%29;STOFA%2814,3%29;SRSI%2814,20%29;CCI%2820,100%29;ACCUM;CHKOSC;OBV;CHKMF%2820%29;MFI%2814,100%29&sym=MLHC&grid=1&height=500&studyheight=100