In Retrospect: MERB, MEG, UPM, MIC, AEV

MERB ‘s “looks as if” did not materialize. MACD crossed upward but went back below the signal line while price moved sideways and has touched the support line on the last trading day. On the coming week watch out for the support line at 69 and the resistance line at 72, the symmetrical triangle is intact, but it is now near the apex, so there is a high probability of the symmetrical triangle being invalidated.

MEG had a failed break out from an ascending triangle. Price broke the resistance line at 3.30. Volume only came in when the price pulled back below 3.30. Interestingly, even if the ascending triangle is invalidated, we can expect another ascending triangle in the formation, with resistance at 3.45 and target price at 4.30


UPM also had a failed break out from a symmetrical triangle. Volume was very high on the breakout day, but it failed to sustain the upward move. Price went as high as 0.85 but closed just 1 fluc above the opening price. It is now forming an ascending triangle with reisstance at 0.85. But the volume from the failed break out somehow invalidates the pattern. Who knows maybe the price movement will just inch its way up as MACD is already indicated a buy long signal.

MIC moved sideways before the failed breakout from a symmetrical triangle. Volume was significantly high on breakout point, but was not sufficient enough to indicate a proper break out. Price may still move down to sideways this coming week so watch out for support at 2.40, 2.30, 2.18 and 1.96. Though the previous symmetrical triangle resistance did not hold, we can still expect a symmetrical triangle, but this time with a higher resistance level.
AEV tried to rally on the last day of trading, closing higher but has signs of weakness as it was unable to move above the 65 day MA. We could expect some up to sideways movement this week with the 65 day MA acting as resistance, but if the following trading days is still accompanied with low volume, the descending triangle still holds, the rally just adjusted the resistance level. A chance to cash in on the rally, better to be liquid than sorry.