Mr Cooper Group Inc (COOP)

[Lawson Digest]

WMIH is preparing to reverse its bullish upward trend, IMO.

Expecting good news before the end of 2012 in the form of a tax-savings move on the part of JPM and other stakeholders in WMIH, traders accumulated shares from 0.45-.50 per share to 0.79-.82 per share in just thirty days. The first days of January the stock has teetered with low volume around the 0.80 mark.

RSI in December started out in an upward trend and continued to climb higher throughout the month, peaking at around 90 right around Christmas. RSI indicates the stock was overbought during the upward trend and the juxtaposition of the downward-trending RSI and upward-trending PPS indicates divergence.

The MACD has turned down and is setting up to cross the signal line.

However, the RSI and MACD are not complete indicators of a reversal, nor does only one week of this downward wedge forming. There's plenty of bias in my technicals because I have been involved in this stock for four years. The small downward wedge, for example, could be an indication of another uptrend. The diminishing trade volume per day is a good indication that shareholders are clinging to their shares and we might see higher bids in the future.

My analytical side says that this stock will slowly drift back to the .70s this month, but the side of me that's been here forever wants it to hold strong with a 0.795 support. Unfortunately, we all need to ask ourselves whether these points of resistances aren't just hopeful investors wishing for value when there is none.