MCIO cracked through 3 last week much sooner than anticipated as it spiked to a high of 4 before peaking for an exhaustion tightening. It closed the week just above the weekly upper bbs at 3.12 just under the daily 5 at 3.29. This is the first daily close under the 5 period ma in 19 sessions! The buyers are not only anxious but remarkably resilient in the 3 x 2.70 basing area.

As mentioned in last week’s blog, I expected a short period of basing under 3 before a breakout trigger. MCIO didn’t even blink as it closed above 3 every session last week.

Therefore, this close under the daily 5 is a much needed breather, not only build a higher base but to stretch out the daily upper bollinger bands to a higher target. Notice how the daily upper bbs sit at 3.66. The mechanics of bollinger bands require some retracement to expand them higher. Support on pullbacks sit at the 2.50 x 2.30 level (stinky 2.50s and the daily 15/weekly 5 overlap) which I am personally targeting as an add level. The weekly chart is a PUP breakout with a potential mini pup on a test and coil anywhere near the 5 period ma.

Going into this week, I would like to see some more basing to build up to a breakout through the $3.50 level by the time the daily upper bbs near 4. Combined with a daily stochastics cross up sets up a fresh new daily pup breakout to the $4.50 x 5.50 level.

This is a very speculative and thin trade. Please review my prior notes on this if you decide the play http://www.themoneyblogs.com/undergroundtrading/my.blog/mcio-possible-20-bagger-only-for-longer-term-speculation-players.html