Above is a daily chart of MSOS, and as you can see, price is now well into the gap. After a sharp selloff, it was encouraging to see a green candle print today, helped along by a news story that hit the tape just before 3:00 ET. While the headline provided a spark, what really has my attention is the structure that’s forming on the chart, not the news itself.
MSOS has now put in three consecutive lower highs following that significant selloff, and all of this is happening right into gap support. This is the kind of price action I like to see. Instead of panic selling or wild volatility, the pullbacks have been relatively clean and controlled. In my experience, these orderly lower highs into a defined support area often set the stage for a meaningful reversal. I’m not interested in guessing bottoms, but I do pay attention when price starts to behave in a familiar and constructive way.
We’ve seen this movie before. A great example was back on November 20th, when a similar pattern of lower highs helped me nail the bottom. That setup didn’t feel comfortable at the time either, but the chart told a clear story for those willing to be patient and disciplined. It’s that prior context that makes this current action stand out to me.
That said, I’m not jumping the gun here. For me, confirmation matters. I’m not just looking for a break of today’s high; I want to see the $5 level reclaimed. Today’s high came in at $4.87, and yesterday’s high was $5.01. A decisive move back above $5.01 would tell me buyers are truly back in control. That’s where I’ll look to add to my long position, which I’ve been holding since the summer lows, and let the chart do the rest of the talking.
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