MPET has recently broken out of the small downtrend and is consolidating after a large gap-up last week. This recent move up has been met with many sellers, most likely many of them happy just to break even and get out of the stock after its recent downtrend. It is forming a descending triangle which is not bullish. The volume on Friday was very low though which tells me we may have survived the selling pressure. If last week’s lows hold, look for bulls to gain confidence giving us another breakout pushing us past $3. I’d consider keeping stop losses not too far below last week’s lows or the 100-day SMA, depending on the size of your position and pain tolerance. We do have the 20-day SMA below us, but If we break support, I’d anticipate we’d fall closer to the 100-day SMA instead where we seemed to find support the other week.
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At the time of publication, Kudrna was Long MPET but positions may change at any time.
