This stock showed up on one of my Telechart screens and I like the look of the chart.
We’ve got a rounded bottom forming and some beautiful bullish volume accompanying nice price action. Also, MATK bounced off a level of support which is a great sign.
Here is a closer look at the recent trading:
Take a look at the two days I have marked on the chart. The first day is down, closing off lows, and on over triple the average volume. That is a big sign of strength that is confirmed on the next day: a wide range up day on even higher volume closing near the highs.
Price has drifted higher on lower volume since then and I wouldn’t be surprised to see a pullback near the resistance. If this happened we could see a good looking cup-with-handle pattern.
If there is no pullback, watch for a high-volume move above the level of resistance that could occur on a gap up or on good news.
You also might enjoy:
About Author
