| |
|
|
| |
|
|
| |
 |
|
| |
Wow MSTG really explodes after good news! Today it gained 12% on news that they are quickly moving towards production.
In fact whenever there has been good news with MSTG we have seen a strong close on very high volume. It looks like the market understand the underlying value in MSTG and is eager to hear any progress that is being made towards mining the over $1 Billion worth of Gold according to a Canadian Certified report that covers MSTG's properties!
Recently MSTG announced Robert Faber as president. Robert Faber was the President of Comstock Mining where he led their transformation into an AMEX listed company with mineral reserves in excess of 1 million ounces of gold!
It looks like Robert Faber is trying to do the same thing with MSTG because shortly after is appointment they announced that they purchased mining equipment, which means they can start producing revenue on their exisitng properties! Investors reacted accordingly, giving MSTG one of its biggest days ever!
MSTG also announced that they expect a lot of financing and investment to come into Honduras, because Honduras is basically hiring consultants from the Government of Chile to help them write laws to attract foreign investment. The idea is that the laws the Chilean Government wrote attracted Billions of foreign investment, so if Honduras writes the same business friendly laws they should see the same results!
This Volume Surge is exactly what you want to see when a stock bounces off of a Major Support Level. I continue to stress the importance of noticing how a stock reacts at Support. Does it bounce back hard or does it lay flat? MSTG certainly proved to us today that the Support Level is strong, sending some very worried shorts back home licking their wounds.
I completely expect this Short Squeeze to continue. This is just the beginning! Today's action proves that MSTG could not and will not break through Major Support at $0.95. There's only one direction to go from here, and that's up!!
Amazing Technicals:
The chart above shows the downtrend line that was established over the last couple weeks as short traders attacked MSTG. We see yesterday how MSTG held support and bounced nicely to close at $1.00. Then, today MSTG ignited with news being a catalyst breaking above the downtrend line to initiate a Short Squeeze.
We can be confident that a Short Squeeze is beginning since there was a clear increase in volume. Volume is key in solidifying both a Breakout Move and a Short Squeeze. Also, take note of the Positive RSI. Today, MSTG's RSI turned positive for the first time since the stock was heavily shorted. This positive reading is another indicator that the shorts have lost and were not able to break MSTG down below its Major Support Level at $0.95.
Be sure to keep MSTG on your radar as today could be just the beginning of what could be Round 2 of MSTG's Breakout Move. Remember, MSTG went on to gain 57% on its first Breakout Move!!
For a great audio interview about MSTG check out this link! And for more information:
|
|
| |
 |
|
| |
|
|
| |
Disclaimer: http://i42.tinypic.com/2eumqvc.jpg
|
|
| |
 |
|
| |
|
|
|
