MLX .0128 feb6th (ish) 2009 > 1.23 jan 12 2018 > recent low 0.26 = 76.4% (!fib!)
many of these stocks decline 78-88% before finding a longerterm low
MLX appears to have attempted an accumulation phase* followed by a typical gap down, likely a an exhaustion move going by the volume, both 13week and 21day money flows are extremely negative (no divergence) ….this extremity needs a fast turnaround or the stock is more likely to go into winter hibernation ….the question of a bottom is a relative exercise in “how long does the bottom play out?”
if social media outlets are still chatting about this stock with “possibility” then likely the bottom will take a long time to play out (not withstanding the usual fake liquidity sponge), sentiment needs to exhaust too, not just as represented in the volume, it needs to be inline with people being disgusted with the decline and if a 76% decline is seen as a discounted bargain opportunity it’s hardly a ‘rejection’ of the loss (todate)
time is a significant component of a low, the question is not are you buying a low, the question is how long can you project that that low price needs to play out ……getting entrapped in a bargain low is very fashionable….
the xgd/xjo/xao are in uber bulls at the moment so likely most boats are on lifting tides but those technical signals need to reflect that it’s not just money washing thru eager bottom feeders for a decent swing higher
if the 88% low succeeds then that’ll make a new low or at least = feb 2009 low…when that occurs, if it occurs, it probably represents MLX as a new entity
…. tradeable low (for a quick % rip)or winter low (trap)?
*someone was buying all that distribution