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Point and figure chart of the day!

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This stock escaped us for the moment, but shares of Macrovision (NASDAQ:MVSN) triggered an alert this morning that we had set for a break below $41 as a buying opportunity in the stock. While the alert was triggered, the alert wasn't followed. I do like the stock long. The bullish triangle pattern is one of the more powerful buy signals in the point and figure charting system. Often times, the pattern results in an explosive move higher, then pulls back very close to where the signal occured and then powers higher once again. Recent activity in the stock has mimicked this type of trading.

Macrovision Chart - $1 box

On March 22nd, shares of MVSN triggered a buy signal at $41 and completed a bullish triangle pattern. We had set an alert at $41 to alert us to a potential reversal for the stock right near where the buy signal was given. Unfortunately that alert was not given to our subscribers, but we'll watch things here. Stock bounced from $40.06 and currently trades at $43.50. If broader market conditions improve, this stock could be a very good performer to the upside. Long-term bullish price objective is $76.

Jeff Bailey
Senior Market Technician

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