MPEL – Another Buy Opportunity To Come

MPEL has traded nicely off its lows. Look for this stock to trade to the 4.31, a 62% Fibonacci retracement level for another buy signal in what could be a move towards 5.06 then 5.65 in larger trading time frames.

When looking for trading entry points for MPEL, the previous corrective wave in this particular wave sequence was 38%. This often leads to the alternate and larger correction in the following wave. Still trade the 4.15 level as a stop at this point.

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By SSTtrader | November 23, 2009 | Watch List | 4 Comments |
  • daytrader

    MPEL broke our sell stop level today. We did trade to our wave 3 five minute trading time frame level first.

    When only a 3 wave Elliott Wave is completed at such a small time frame, before a sell stop is triggered, it can be attributed to the possibility that the corrective trend is still the three wave sequence higher, and the 5 wave (or dominant wave) is still the downtrend lower.

    If the trend is to change, a 5 wave downtrend needs to be completed followed by a five wave uptrend, which failed at this entry point and time frame.

    Today’s trading did hold the 3.95 level which was the prior low before the daily wave 3 break out. Watch for this level to hold or break for the direction of the trend.

  • daytrader

    MPEL held 4.03, a penny off the previous low, and has traded to 4.35 so far today even as a downgrade by Morgan Stanely comes out cutting the stock to equalweight from overweight.

    MPEL has been volatile, but I think the trend is up. The stock has so far traded over 7 million shares today, more than double the previous day as it retested the low. MPEL will most likely close on higher than average volume at this pace.

  • daytrader

    A correction to the downgrade was issued. It was actually an upgrade from equalweight to overweight.

    Dow Jones released it as a downgrade at 12:12 and just corrected the statement at 20:24. You can see how MPEL had traded higher into the news, and fell as the incorrect call was released.

    MPEL did close today on higher than average volume. Todays trading high of 4.35 was two cents off a wave 3 profit level of 4.37. If MPEL is not to trade lower than the 4.02 trading low, the next wave higher will be 4.5988.

  • daytrader

    MPEL traded to the previous price target level reaching a high of 4.67 on December 2, 2009. However, since this high MPEL has broke the 4.02 low that it bounced off of.

    MPEL has made a similar move higher off its recent low of 3.66 to a high of 4.10. Today MPEL completed a 62% retracement of this move. This trading action is similar to the previous brake of the low, yet if trend continues MPEL will trade to 5.25.