The irregular triangle in Melco Crown (Philippines) Resorts Corp. (stock symbol: MCP) has broken a few days after my previous post. However, MCP found support just ahead of the 12.00 level and price turned around, only to find further selling ahead of the multi-month problematic area at 14.00.
Recent price action showed selling has proved too much for bulls. MCP will create new 2014 lows if the highly-critical support at 12.00 will break. Bulls should make it awefully hard for bears to reach their near-term aim at the 8.00-10.00 area. Resistance remains at 13.00-15.00.
The Commodity Channel Index has entered the -200 region and this bodes badly for bulls.
TP’s Advice: Would-be buyers should stand aside for now.
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