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Romeo Fayette
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The Buttonwood Tree: Diary of a Financier
  • Spotlight: MBLX 0 comments
    Sep 11, 2009 11:52 AM | about stocks: MBLX

    If you haven't take a look at this stock, you should.  In a nutshell, Metabolix uses bioengineering to fashion materials like organic plastics.  Note that these products are biodegradable and not petrolium based, a great duet.
    MBLX has a partnership with Archer-Daniels Midland.  The opening of their first production plant was delayed, casting the stock into a serious downtrend as of 11/30/07.  Over that period, MBLX has put in lower lows and lower highs:

    Also, a drop in oil prices pulled MBLX down as consumer demand for petrol-alternatives waned.  Finally, as a micro-cap, they were impacted throught the credit crisis.

    Where we stand today, a new uptrend (a/o 6/15) has been established.  If the price rips through $12 before the Slow Stochastic Oscillator %K reverses down, MBLX will enter a topside breakout.  If it shys away, the divergence between the Stochastic and the price tops forcasts a ST shakeout before resuming its hike back up:

    If you're in on the stock already, I recommend selling to avoid the upcoming downtrend.  VWAP a/o 12:43 on 9/11 is only $11.82.  Doesn't look like there's enough demand to push it across the $12 resistance, which it's tested 3 times intraday without breaching.
    Nevertheless, the LT trend has certainly turned after the lower-lows/lower-highs pattern was broken on 6/15.

    Disclosure: closed MBLX position 9/9/09

    Stocks: MBLX
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