A Purely Technical View

Now that we are past Google's (GOOG) premature earnings release, we can start looking at the rest of the market, including the disappointing Microsoft (MSFT) numbers that have added to the weight of the technology sector and overall market along with GOOG. The early release of GOOG got me a bit off keel yesterday, so I didn't get to finish all the charts that requested of me on the Diary, so I want to play catch up here. I'm not going reflect much on 1987. I was just about to turn 14 at the time, and the only influence I felt from the 1987 crash was the fact my portfolio in the stock market game at school was crushed along with everyone else's. And that was just a game, so no worries, right? Ignorance can be bliss for the youth. Obviously, it is dangerous as well. I digress, though. I'll let others tell stories, as they will prove far more interesting.

One request was to look at MDC Partners (MDCA), formerly MDC Communications. This is one where I know the name, but don't know the fundamentals of the company. So, this is merely a technical look at the stock. This is a story of two time frames: the daily vs. the weekly. These time frames seem to tell two different stories. For instance, the daily chart seems to show a short-term risk in shares here. It appears as if price has fallen out of a bearish flag, which targets at least $11.80, which is big support. A loss of $11.80 puts $11.15 into play for this name. The RSI and stochastics diverged prior to the price, so they should be watched. A significant turn higher in either may precede a bounce in the stock. Ideally, the stock would put back to $11.80 while those two indicators began to move higher even as the stock fell. There is a bearish crossover in the TRIX already in play as well. I fear this stock will break $11.80 and head for $11, so I would have a hard stop around $11.75....207 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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