AI
Sunday, September 11, 2011 4:18:33 AM
MNTA: TA 9/9/2011, Bear flag like the S&P 500
For almost three months MNTA has been moving with the broader market (as represented by the S&P 500). It has moved in lock-step with the market almost to the hour.
If you refer to my last chart (#msg-66889690) you'll see a channel that I've drawn for both MNTA and the S&P 500. That choppy channel is a "bear flag" which is a bearish continuation pattern. The market might get a slight bounce early next week, but then buckle your seatbelts as this is going to get ugly with the market poised to break below the August lows.
Here's a Forbes article on the bear flag and what it could mean for the stock market:
www.forbes.com/sites/greatspeculations/2011/09/09/ominous-bear-flag-pattern-portends-sp-500-at-1000/. For "bear flag" info, look here: http://chart-patterns.netfirms.com/bearflag.htm or http://www.mypivots.com/dictionary/definition/421/bear-flag-chart-pattern.
Going forward, as I have said before, MNTA needs to do two things; 1) break free of the gravitational pull of the market and 2) clear the $17.50 resistance level with a sustained move. Currently, there are two levels to keep an eye on. The first level is around $14. A 4-year trendline is around this level and this trendline held up in the last bear market/recession. If MNTA nears this level and stabilizes/holds, then load up on shares. The second level is $17.50. MNTA needs to clear this level with a sustained move otherwise it is stuck in the current trading range.
For almost three months MNTA has been moving with the broader market (as represented by the S&P 500). It has moved in lock-step with the market almost to the hour.
If you refer to my last chart (#msg-66889690) you'll see a channel that I've drawn for both MNTA and the S&P 500. That choppy channel is a "bear flag" which is a bearish continuation pattern. The market might get a slight bounce early next week, but then buckle your seatbelts as this is going to get ugly with the market poised to break below the August lows.
Here's a Forbes article on the bear flag and what it could mean for the stock market:
www.forbes.com/sites/greatspeculations/2011/09/09/ominous-bear-flag-pattern-portends-sp-500-at-1000/. For "bear flag" info, look here: http://chart-patterns.netfirms.com/bearflag.htm or http://www.mypivots.com/dictionary/definition/421/bear-flag-chart-pattern.
Going forward, as I have said before, MNTA needs to do two things; 1) break free of the gravitational pull of the market and 2) clear the $17.50 resistance level with a sustained move. Currently, there are two levels to keep an eye on. The first level is around $14. A 4-year trendline is around this level and this trendline held up in the last bear market/recession. If MNTA nears this level and stabilizes/holds, then load up on shares. The second level is $17.50. MNTA needs to clear this level with a sustained move otherwise it is stuck in the current trading range.
(As usual, all forward looking statements are my opinion only.)
Have a great day everyone!
