Stock: MM
Company: MerryMart Consumer Corp.
Support: 6.60 / 6.18
Resistance: 8.00


The stock posted a massive breakdown yesterday, canceling out three-days worth of rallies. It settled just a few points above the support at 6.60 but still hasn’t closed the gap it saw last 4 Jan.

With indicators slightly bearish, MM could very well sustain yesterday’s downturn and close the gap before bouncing back up. This means that any sustainable rally in the future would need for MM to tap 6.18 before trading upwards.

Do note that volatility spiked in yesterday’s trading session, and its parabolic SAR is on the bearish side.

What is crucial now is for MM to hold the fort above the 6.18 level for it to maintain this elevated range.

Recommendation

If you still have existing stock positions, we recommend selling the stock on strength.

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