Another strong day for MNTS, and this time it came on volume of over 25 million shares, which immediately tells me this move has participation behind it. Above is a daily chart of MNTS, and the first thing that stands out to me is that the stock has now filled its prior gap and has started to back off slightly. That type of action is completely normal. Gap fills are often areas where traders look to sell, lock in profits, or reduce exposure, so seeing some hesitation here is not a negative in my view.
What is notable is how well MNTS has held up despite that expected selling pressure. As of after-hours trading, the stock is trading around 15.70, which is roughly $1.80 higher than the 4:00 close. That kind of strength after the bell suggests there is still strong interest in the name and that buyers are willing to step in even after a big move.
Looking ahead, the most important level on my chart is clearly the $20 area. This is heavy overhead resistance and not a level I expect to be taken out easily. Back in the summer, $20 acted as support, and when that level finally broke, it flipped roles and became resistance. We saw that resistance clearly hold in December, which makes it even more meaningful now.
If MNTS does make a run toward $20, I’ll be paying very close attention to volume. Volume will tell the real story. A push into that level on declining or average volume would suggest sellers are still in control. On the other hand, if price approaches $20 with expanding volume, that would increase the odds of a breakout. For now, MNTS remains strong, but the next test will be whether it can absorb supply at that key level.
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