Inverse H&S Joey is talking about:

[tripoley]

K, this is ten year chart for MNKD (top) and one I found on gold (bottom) that draws it out.  It took me a while to see it until he explained it to me in detail (thanks Joey!).

Attachment Deleted


Anyway, disregard where gold went after this (it didn't pan out <--- pun, ha, ha) but look at where that left shoulder started.

[mnholdem]

I made some comments on Joey's remarks. Have you noticed the inverse Head & Shoulders you've circle is contained within another, larger, inverse H&S?  I mentioned the $20 mark completes the longer-term inverse head & shoulders pattern, but I didn't know what to do with the fact that the $20/share was before shares were diluted. Being somewhat of a T&A virgin (be gentle) I don't really know how, or even if, dilution should be factored in. Or, for that matter, whether T&A can even be applied with a stock like MNKD with its large short interest.

I'd sure love to see $20's again, though... would wouldn't eh?

[tripoley]

May 19, 2015 8:29:12 GMT -5 mnholdem said:

I made some comments on Joey's remarks, noticing the $20 mark as completing the inverse head & shoulders pattern. However, I didn't know what to do with the fact that the $20/share was before shares were diluted.

I'd sure love to see $20's again... would wouldn't eh?

Good point on the dilution and I don't know the answer.  I wonder what a chart based on the market cap would look like?

[joeypotsandpans]

IMO everything is incorporated into the charts, in other words, the news follows the charts....so you could look at it like the charts on the sell down from the 20's preceded the dilution news over the years and the move up will anticipate positive news going forward ie., the convertible note worry going by the wayside with no further dilution, better balance sheet and earnings potential. The resistance and support areas are typically price pivot consolidation areas where high volume accompanied past events either to the downside or upside. Gaining a better understanding of supply, demand, price points and market (mob) psychology helps when looking at the various indicators that make up TA.

Think about it this way regarding MNKD, when it came to market, how much was known/understood at that time about the benefits of the product versus present day. How much has changed, even though the CRL came regarding the change in the inhaler and it caused dilution, does the newer design overcome that dilution due to its benefits? The new possible applications for technosphere, were they validated via a successfully approved drug showing the benefits of the new delivery technology?

So in essence, it could be construed that the valuation of the company gets built into it and adjusted, the same as dilution gets absorbed by the market. The charts should anticipate those factors, after all they just represent us the buyers who believe that the value is x versus them the sellers who believe it (the value is y)...all the charts do is anticipate that behaviour ahead of time.

[Deleted]

whats the bottom line target? i am surprised of this moves

[tripoley]

May 19, 2015 14:04:22 GMT -5 joeypotsandpans said:

IMO everything is incorporated into the charts, in other words, the news follows the charts....so you could look at it like the charts on the sell down from the 20's preceded the dilution news over the years and the move up will anticipate positive news going forward ie., the convertible note worry going by the wayside with no further dilution, better balance sheet and earnings potential. The resistance and support areas are typically price pivot consolidation areas where high volume accompanied past events either to the downside or upside. Gaining a better understanding of supply, demand, price points and market (mob) psychology helps when looking at the various indicators that make up TA.

Think about it this way regarding MNKD, when it came to market, how much was known/understood at that time about the benefits of the product versus present day. How much has changed, even though the CRL came regarding the change in the inhaler and it caused dilution, does the newer design overcome that dilution due to its benefits? The new possible applications for technosphere, were they validated via a successfully approved drug showing the benefits of the new delivery technology?

So in essence, it could be construed that the valuation of the company gets built into it and adjusted, the same as dilution gets absorbed by the market. The charts should anticipate those factors, after all they just represent us the buyers who believe that the value is x versus them the sellers who believe it (the value is y)...all the charts do is anticipate that behaviour ahead of time.

Thanks Joey, always appreciate your invaluable insight.  A lot of uncertainty has been removed since 2006 and that chart has been a decade in the making.  I suppose a good way to view it is that all events and history have been baked in.

Now from my own very simplistic TA, I think what we've just witnessed is a Gunship Doji:

Attachment Deleted

[joeypotsandpans]

Still very much intact, maybe that large open interest in the Jan 5 calls is foretelling?

finance.yahoo.com/echarts?s=MNKD+Interactive#{"showArea":false,"showLine":false,"lineWidth":"2","showCandle":true,"lineType":"candle","range":"10y","allowChartStacking":true}