19 August 2020

MND had a big jump in price yesterday so I thought I’d take a look at its chart. 

In my view it is probably not yet time to jump in. Price needs to break above a downtrend and make a higher low followed by a higher high. Interestingly, the price pattern at the bottom of the last two major bottoms showed price jumping up (as it did this week), rising for 5 to 7 weeks and then falling right back. I’d be waiting to see if it repeats this pattern. In charting, history does repeat!

The stock trends well when it get’s going and the last run up made 123% before falling back and then making a final 60% gain in a push to the top. Unfortunately, there was no buy signal for that last surge, so I would have missed that.

Has price bottomed? Not sure, but probably – I need to see where price goes over the next week or two. One vote for the bottom being in is the head and shoulder pattern (points 3, 4, 5,A & B) which predicts price will fall to – exactly where it did!

MND makes very exaggerated waves, meaning buy signals can be found in all the wrong places to sucker in the unwary. Elliott Wave knowledge is a must to be able to identify probable wave action and allow buy ins only at the bottom of those falling waves.

Contact

Robert Norman

Phone: 0428 346 951
Email: robert@sharecharting.com.au

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