M has ascended through a 31-month bull channel from (06 Mar 09/12 Aug 2011/07 Oct 2011 weekly lows/16 Oct 2009 weekly high). The recent advance off the 24.38 low (04 Oct 2011) near the bull channel support threatens the 30.62 high (22 Jul 2011) (Resistance 1) on the heels of a bull MACD cross. An upside breakout there would initiate the next upleg towards a series of lower highs starting from 31.55 (05 Dec 2007) (Resistance 2). Further strength above there would allow bulls to seek 33.76 (29 Oct 2007) (Resistance 3) which guards the 35.76 lower high (03 Oct 2007) (Resistance 4).
However, failure to reclaim 30.62 would delay and re-open 28.62 (Support 1). A clean loss would expose 24.38 (Support 2) for a retest. A breakdown there would form a potential swing high and risk a deeper setback towards the key 22.66/21.69 support zone (Support 3).
Trading Indication:
Short-term (or Intraday):
Buy at 29.00 or lower;
Target at 31.55 and higher;
Stop Loss at 28.60 (1.4%)
Long-term: Possibly sell higher
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