July 31, 2018 A technical sneak peak of MITK by Jerome Noel
BREAKOUT ON 200SMA, Trend, NEWS on 37% Up on Revenue
For almost 3 months MITK had been trading upward above the 200SMA. It reached a high of $9.78 but had not broken the former high of $9.99. This is the 5th time it failed upon breaking the $9.5 resistance
May 2, 2018 it had an amazing run with a huge candle breaking out 200SMA and a volume more than 1M, almost 3x the usual daily volume. The only concern was that the lower time line SMA (20, 30 and 50) were all below the 200SMA(Black wave). So it was not a good buy at that time.
1 month later, all those lower time lines SMA are breaking out of 200SMA. As they were up above the 200SMA, so thus the Price too. The Price had been always above the 30SMA(Blue Wave) and the 50SMA(Light Blue Wave) up when it reported the 3rd quarter on July 26, 2018 with the news: "Mitek Reports Record Third Quarter Revenue, Up 37% Year Over Year. GAAP net loss of $(2.8) million, or $(0.08) per share."
HOW THE BIG INSTITUTIONS react to this kind of news?
May 2, 2018. a huge volume with a huge candle had already occured. That was a sign of a big move from big institutions. For almost 3 months small time investors followed that move until it reached $9.5 the resistance that had been tested for 3x. The Big institutions had made already their money from $8.00 to $9.50. Reaching that strong resistance was a signal for them to dispose what they already gained. Thus the next day (July 27, 2018) a huge drop and a huge red volume occurred. Yes, it can also be a reaction of the over-all market when FB had a huge drop getting SPY to also come down.
POSSIBLE SUPPORT AND ENTRY/RE-ENTRY
But this is how big institutions work. They use the News to make their move. They know that a lot of people would look at only the revenue and not the net loss. They capitalized on that. But they knew that whenever they gonna plummet the stock, the price to which they gonna support back is the same price where they had entered last may 2, 2018. So the big probability is that MITK will get support around $8.00, the low of the large candle last may 2, 2018. And probably that might also be the turning point where it will break the $9.50 coveted restance line. Why? If you look at the 2year time line of the chart the lower lows are still respecting the straight line that connects them (CYAN Line). We just have to make sure that the price will be able to go back up the 200SMA(Black wave) and keep pushing up there. The price seemed to be oscillating between the orange and cyan triangular lines. This is a VCP (Volatility Contraction Pattern) formation going for 12months(Jul 2017 - July 2018) now. A breakout of this long VCP would be potent ride for strong upside move.
2 YEAR MITK CHART
BREAKOUT ON 200SMA, Trend, NEWS on 37% Up on Revenue
For almost 3 months MITK had been trading upward above the 200SMA. It reached a high of $9.78 but had not broken the former high of $9.99. This is the 5th time it failed upon breaking the $9.5 resistance
May 2, 2018 it had an amazing run with a huge candle breaking out 200SMA and a volume more than 1M, almost 3x the usual daily volume. The only concern was that the lower time line SMA (20, 30 and 50) were all below the 200SMA(Black wave). So it was not a good buy at that time.
1 month later, all those lower time lines SMA are breaking out of 200SMA. As they were up above the 200SMA, so thus the Price too. The Price had been always above the 30SMA(Blue Wave) and the 50SMA(Light Blue Wave) up when it reported the 3rd quarter on July 26, 2018 with the news: "Mitek Reports Record Third Quarter Revenue, Up 37% Year Over Year. GAAP net loss of $(2.8) million, or $(0.08) per share."
HOW THE BIG INSTITUTIONS react to this kind of news?
May 2, 2018. a huge volume with a huge candle had already occured. That was a sign of a big move from big institutions. For almost 3 months small time investors followed that move until it reached $9.5 the resistance that had been tested for 3x. The Big institutions had made already their money from $8.00 to $9.50. Reaching that strong resistance was a signal for them to dispose what they already gained. Thus the next day (July 27, 2018) a huge drop and a huge red volume occurred. Yes, it can also be a reaction of the over-all market when FB had a huge drop getting SPY to also come down.
POSSIBLE SUPPORT AND ENTRY/RE-ENTRY
But this is how big institutions work. They use the News to make their move. They know that a lot of people would look at only the revenue and not the net loss. They capitalized on that. But they knew that whenever they gonna plummet the stock, the price to which they gonna support back is the same price where they had entered last may 2, 2018. So the big probability is that MITK will get support around $8.00, the low of the large candle last may 2, 2018. And probably that might also be the turning point where it will break the $9.50 coveted restance line. Why? If you look at the 2year time line of the chart the lower lows are still respecting the straight line that connects them (CYAN Line). We just have to make sure that the price will be able to go back up the 200SMA(Black wave) and keep pushing up there. The price seemed to be oscillating between the orange and cyan triangular lines. This is a VCP (Volatility Contraction Pattern) formation going for 12months(Jul 2017 - July 2018) now. A breakout of this long VCP would be potent ride for strong upside move.
2 YEAR MITK CHART
1 YEAR MITK CHART
