MBWM closed green above support zone, long opportunityMBWM closed above the support zone, so it may be worth it thinking about a long swing-trade.
Possible SL@$19.09
Possible TP@$23.11
No investment advice.
MBWM trade ideas
Incredibly overbought in a market downtrend. After Mercantile's earnings call shares soared against the trend of the overall market. As the market progressed today the lone stocks that soared (i.e EBAY, MWBM, EDU) failed to keep bulls excited and dipped soon after news hit. We see a similar pattern with MWBM. If the market continues to sell off tomorrow the few puts available are cheap, easy picks, and are likely to see profits.(down 50-60% due to the sharp incline)
Technical Analysis, shows a Fibonacci Retracement from the 3 hour chart seeing a spike blow through 2 lines of resistance and if it continues it will hit the third in the next market session. RSI overbought on almost all recent time frames with bearish divergence on 45m and lesser timeframes.
All of this is given if the market continues to sell off tomorrow. If markets recover MWBM is likely to consolidate, if not enter a very gradual uptrend. I'm waiting.
