Monday, December 16, 2013

M1 ($3.18) - Holding on to support

This is the only company in its sector that is still intact. Since the others have broken down, it is unlikely that prices can hold on to the rising 200-day moving average currently at $3.18.

A breakdown from this level would also complete a top formation, indicating a target of $2.90, a level not seen since mid-year. The likelihood of a breakdown is high. Quarterly momentum has been in a declining trend since October, and the indicator has just broken below its equilibrium line, indicating a possible price breakdown.

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