Last week I posted about the resistance Melco Crown Entertainment faced in its chart from an imminent overhead death cross. Here’s the chart I included in the article:
Here’s what I said about MPEL’s near-term prospects:
MPEL’s death cross will be happening at around $35.75, within about 3% of the level the share price is currently. MPEL has risen 8% in the past five trading days, but the 50-day SMA and the 200-day SMA will provide a likely resistance level for the stock at around $35.65-$35.85 since they are basically at the same level.
And here’s an updated chart since I posted that last Tuesday:
Unfortunately for MPEL shareholders like me, things have played out exactly as I predicted, nearly to the very cent. MPEL peaked at $35.73 before pulling back. Bummer. As I said before, I am still a big believer in MPEL in the long run, but the chart is still looking pretty grim in the short term.
Which brings me to BAC. On April 30, I gave my reasons for buying Bank of America at $15 after its $4 billion accounting error embarrassment. So far so good on that trade as BAC closed today at $15.43, up about 2.9% from my purchase price. But take one look at the BAC chart and you’ll see why I’m concerned about the stock in the short term:
If you look at that chart and don’t see what I see, go back and read this post from last week. Maybe the next week will turn out better for BAC shareholders than the past week did for MPEL shareholders. But I wouldn’t bet on it…
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