Update after market close:
Terrible day, Mpel down a whopping 7.42% at $10.85. However, I still believe that over the long run Mpel will test it long term resistance at $16 to form a double bottom.
Based on the after market analysis of Mpel, I believe that Mpel will have another 1 day of consolidation before it will start moving up again. The immediate support level which is at the mid of Bollinger Band now is very important to determine the future price of this stock. If this support fail, then Mpel might be going down even more to the previously resistance turn support at the $10.30 level. I no longer have any capital in hand, if I have, I definetely show hand to scoop as many stock as possible which it is still attractively price. i believe that the whopping crushing of Mpel yesterday is to shake off the weak player or the contra player our of this stock before it continues its run up ahead. This is a very crucial time at this moment because the decision that I will make in the next couples of day will resulted in me earning few thousands more or few thousands less. At this point in time, I really can't afford to lose and I did not have the intention to give in and cut loss for this trade.
Disclosure: I have not sold Mpel on today's tumbling, I am still holding on tightly to this stock. As of now, i can only rely on O Mighty God to have mercy on me. May god have mercy on me! God bless!
It is a very terrible day for me!
It is unbelievable, at first I was up by 4%-6% now I am down by 3-4%, all this action happened in just a matter of 2 days infact. It is indeed a wild ride and not for the faint hearted. As I have mentioned in my previous post, I cannot afford to lose money now as I have personal commitment to fulfill into. This is a really bad day for me. I enter Mpel at the price of $11.25 and now the price is $10.81 with roughly a 3% lost. Now the biggest question is should I cut my losses now or should I wait for the rebound? If I were to wait for the rebound, I might be getting myself in deep water as Mpel might continues it's ride down. If I cut my losses now, I will lose around $3,000. At this point in time, I can't afford to lose money.
But thankfully to my many years of experience in trading this wild market has make me into a calmer and wiser person.
Based on the technical analysis, the uptrend is still intact. I believe today big down is the work of the stock operators to scare away the speculators who are long in this stock. The speculators will take this opportunity to cover their long position before the next uptrent to continue. Afterall, this stock has been moving from the low of $8.80 to the current level of %11.80 (an increase of 34%) before today correction bring it down to the $10.70 level (huge drop of 8.5%).
I did not expect a big sudden drop in a day as I do not have any chance at all to sell since the Mpel started trading this morning. If I choose to cut loss now, then it is definetely a loss for me. However, I am a swing trader and I believe that the current swing for Mpel is still up.
It is indeed a terrible day for me, at this point in time, I do not have any choice but continue to ride this stock as I believe that the current rally for MPEL is not over yet.