Midas

Commenatry:

Midas has been riding on uptrend since the begining of Nov. Recently its MACD cuts down from its uptrend line. Since movement in momentum indicators precede price action, this is a cautionary signal that price action might follow. True enough, price action cuts down and closed underneath trendline today (violation of trendline was given further weights with a strong volume day). A 2nd consecutive day of closing under the trendline will confirm of further weakness in the days ahead.

Strategy:

Traders with long position can consider taking profit or cutting their losses immediately.

More aggressive traders can consider short position. Immediate support could be around MA20 level or recent low of 49c. A closing below 49c would spell trouble with more downside momentum to follow.