Thursday, April 22, 2010 9:25:18 PM
A look at Mesa's A / D Line and MFI:
Look for A/D Line to turn. It started down trending - distributing - during a portion of this consolidation period, and it went under the 14dma...thus the protracted bearish pullback we have been experiencing...keep an eye on it because we might be in store for some heavy accumulation leading into the summer months because a lot of eyes are on this stock and many way want to be on board before the Delta Issue is resolved. This accumulation - if it continues will continue to drive the pps up - look for the A / D line to cross above the 14dma for bulls to control the stock once again. It's almost May, and Summer is right around the corner...
The Money Flow Index or MFI:
Money is slightly starting to flow back into the stock. Since post bk highs, the mfi has been down trending during this consolidation, signaling money leaving the stock for a variety of reasons...flippers taking profits, impatient traders who can't wait out long consolidation periods, folks who got trapped too "high" and sold for a loss, shorts, naked shorts, etc. It too crossed under the 14dma signaling a bear turn, and it has bounced of the low we hit in the .08's. The 14dma also needs to head north - this coupled with increased buying pressure will take the mfi north and back over the 14dma.
Bottom line: Look for the MFI and A / D line to start heading north in the coming months for the uptrend to continue.
Look for A/D Line to turn. It started down trending - distributing - during a portion of this consolidation period, and it went under the 14dma...thus the protracted bearish pullback we have been experiencing...keep an eye on it because we might be in store for some heavy accumulation leading into the summer months because a lot of eyes are on this stock and many way want to be on board before the Delta Issue is resolved. This accumulation - if it continues will continue to drive the pps up - look for the A / D line to cross above the 14dma for bulls to control the stock once again. It's almost May, and Summer is right around the corner...
The Money Flow Index or MFI:
Money is slightly starting to flow back into the stock. Since post bk highs, the mfi has been down trending during this consolidation, signaling money leaving the stock for a variety of reasons...flippers taking profits, impatient traders who can't wait out long consolidation periods, folks who got trapped too "high" and sold for a loss, shorts, naked shorts, etc. It too crossed under the 14dma signaling a bear turn, and it has bounced of the low we hit in the .08's. The 14dma also needs to head north - this coupled with increased buying pressure will take the mfi north and back over the 14dma.
Bottom line: Look for the MFI and A / D line to start heading north in the coming months for the uptrend to continue.
THERE IS ALWAYS ROOM AT THE TOP!
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