Stock Chart Analysis MBT

Stock Chart Analysis MBT

Mobile TeleSystems OJSC (ADR) (Public, NYSE:MBT)

MBT came up in one of my scans tonight and I think it has decent potential. MBT had an amazing run from the middle of 2006 through early this year, but it has since fallen into a correction. It broke a trend line I had drawn on the daily chart, which signaled the end of the impulse move higher and the beginning of a correction or consolidation. However, if you pull up a weekly chart, it looks like MBT is bouncing off of a longer term trend line, which also lines up nicely with the theory of an end to the wedge like correction playing out. I always pay more attention to the longer term charts, as the underlying trend has a way of tugging on the shorter timeframes. So while many are looking at MBT as a stock that has topped, I would probably lean to playing this as a buy.



Good Trading,


Joey

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