MRVC Double 50 DMA Bull
M R V Communications (MRVC) has setup a nice double 50 DMA - 50 day moving average -Â bull flag. The keys that make this pattern relavent include the uptrending 50 DMA and also the strong volume support when bouncing off the 50 DMA. Making a play on this stock is simple, buy as close to the 50 DMA as possible, and place a stop below it. Currently MRVC is trading around $3.53, so if you bought here a stop at $3.30 would be sufficient. You could also wait for a high volume break above $3.80 to take your position.
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LinkedIn Poll Respondents: Quite bullish
(Blogging the Commodity Bull Market, 10/15/08)
Bull or Bear or Neither
(Random Roger's Big Picture, 12/11/06)
Buying on Bullish News
(All Allan, 10/28/08)
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Posted by Blain Reinkensmeyer on December 28, 2006 at 9:59 am --
[...] twice to setup a nice bull flag pattern. For example check out my chart on M R V Communications (MRVC), I will be posting an update post on the stock here today, and it is a prime example of how to play off the 50 DMA for some strength. Keep an eye on NYX to see how it ends up closing today though, a close above $100 on strong volume could mean good things next week. [...]
[...] This chart of MRV Communications (MRVC) comes after a call based on a Double 50 DMA Bull Flag of a few weeks ago. The major aspects of the original call included the two supports off the 50 day moving average, alongside an uptrending 50 day and good support accumulation. Today the stock is retracting on lower volume, and may represent another buying opportunity for those who are interested. The stock is trading in the low $3.60s currently after hitting a high of $3.83 last week. [...]
[...] Our call on MRV Communications (MRVC) has now panned out huge. If you didn’t catch the double bottom off of the 50 DMA bull flag, you can find the original MRVC chart we posted here. After Intercontinental Exchange (ICE) gave us over 20% gains, this blog is officially on fire! Regarding MRVC, if you still hold your position this would not be a bad time to take some money off the table. Typically you will find the gap up tested as early as tomorrow and the rest of the week. Anything sell above $4 and you have a high probability of buying back at a lower price. [...]