Medinah Minerals (MDMN)

[Hurricane_Rick]

Today was a key trading day from a technical basis. On the heels of last weekend's shareholder's meeting and Friday's announcement of the purchase agreement, we had a nice gap up spike to .169 Monday morning, but sold off rather immediately to .13 which has served as a very strong support line. Despite shareholders being disappointed with the price action from Monday after a terrific shareholder's meeting, clearly there were people undeterred by any temporary corrections. As the price consolidated on low volume and approached the 20MA and lower trend line of the channel we've been trading within for the last few months, we were set up for a bounce which we got today...and a bit more aggressive than I anticipated. Watching Level II it was clear that there were some whale-like buyers both attacking the ask at the wall at .14 and supporting the bid with large blocks all the way up today.

Today's trading (along with several other points during the current run) also exemplified what is known as the Holy Grail Trade. It was a near perfect setup in fact. Although the article I reference utilizes a 5-minute chart, you can use any time frame and 5-minute charts don't usually work with pink sheets. However, the daily chart below clearly illustrates the Holy Grail Setup.

The key technicals to look for are an RSI that has been trading above 70 indicating a very strong upward trend. The next think you need is volume which we began seeing today as the move broke out of a consolidation period. The 3rd component is the price bouncing off of the 20 MA. While the price didn't hit the 20MA, it came close enough to make a confident determination that the bottom was in. And finally, we needed to recognize certain identifiable patterns confirming the reversal trend. In MDMN's case we are trading within a nice upward channel. We also had 2 bullish reversal hammers in a row.

Today's resumption of the longer term trend was practically written in stone and anyone who took advantage of it should see a nice follow through for the next several trading sessions as the trend continues.

Great day all around and tomorrow being a Friday before a holiday weekend with major company-making news in the near-term offing bodes extremely well. It is very possible that we take out the weekly high of .169 tomorrow.