MSOS Prints Its Tightest Range Since Christmas

 

Another quiet day today for MSOS, seriously, was today a holiday or something? Price action was about as sleepy as it gets, but that’s exactly why it caught my attention. Above is a daily chart of MSOS, and in the lower pane you’re not looking at volume. What you’re seeing instead is the daily range for each session. I zoomed in to make it easier to see the recent action, which is why some of the top of the chart got chopped off, but the message is still very clear.

Take a look at today’s bar. The daily range was extremely narrow, in fact, it was the tightest range we’ve seen since Christmas. When ranges compress to this degree, it usually doesn’t last long. Tight ranges tend to precede range expansion, and when that expansion finally comes, it can be fast. This is the kind of environment where I stop being bored and start getting ready.

Structurally, MSOS has now put in what I consider six consecutive lower highs. Yes, I know Friday technically took out Thursday’s high by a single tick, but I was watching it closely in real time, and we never actually saw a bid above Thursday’s high. For me, that still counts as a series of lower highs. That sequence tells me sellers have been able to cap price consistently, even though they haven’t been able to push it meaningfully lower either.

At the same time, MSOS is still holding the daily gap. That’s an important detail. Gaps often act as support on pullbacks, and the fact that we’re holding in this area suggests buyers are still defending it. This is a zone where a bounce can develop, especially if we see volatility start to expand in the right direction.

The way I’m planning to play this is pretty straightforward. I want to see a range expansion to the upside. Ideally, that comes in the form of an opening range breakout or at least early signs of relative strength compared to the broader market. If buyers step in and we start to see momentum build, I’ll be watching closely for price to push above today’s high at 4.09. If that happens with some conviction, I’ll look to grab some more shares for a possible leg higher.

For now, there’s nothing to do but stay patient and stay alert. Quiet days like this often set the stage for bigger moves. The key takeaway here is simple: be ready for range expansion, because MSOS looks like it’s coiling for its next move

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