MG Magna

mg may 12 2015 bmg may 12 2015 s

Magna is up tenfold or something like that since the lows of “the Great Recession”. That is pretty impressive and quite surprising as this company is primarily in the business of making cars. That business definitely did not look that hot at the time.

   The chart is intriguing in that there is overlap at the top which suggests either a wedge or a series of 4-5’s. We think the latter is applicable even if the exact count is a little problematic. In any event it looks like there is no more than $5 left to the upside, if that. Also the RSI and especially the MACD do not seem to be promising anything more either. Time to bail.