[malaguti]

Hi Isa,
Can I get your analysis on MDR? I thought the stock was poised for an increase but it tanked today (on earnings). I thought it looked like a breakout was coming based on increased volume on the week of July 8th.

IMHO- If your talking about Mcdermott international I would say stage 4 and if your in to shorting stocks then you get the idea. Like Weinstein's says " The tape tells all". To me its what you see not what you want to see. Also it may be in week 1 of stage 4 and it can keep falling in a stage 4. 

MDR - Mcdermott

Mactheriverrat,
From yesterday's action, yes it is back to stage 1 in my opinion, stage 4 would mean it is still declining? When I looked at the chart I thought it was in stage 1 for about 6 months and moved into a potential stage 2 on July 8th week. See attached my chart and thinking. I can see that at the time I thought it was going into stage 2, the mansfield relative strength was still below the zero line but it had been increasing for a number of weeks. Appreciate any one's input into my assessment.

if i could give my take on this..
the last support at 5.92 (week of 28th May), was less than that on 24th Dec. which means you have lower lows (therefore a downtrend). The potential breakout point at 10.62, we don't have a weekly close
both of these would be a cause for concern for me.
i always look for a higher low, and a close above any previous resistance 
all pretty moot now though as its gone into a stage 4 continuation