Trading can be a quirky game sometimes. Most of the time, news - or at least loudly voiced opinions - tend to result from or be the cause of a fast-moving stock. Every now and then though, as in the case with MER Telemanagement Solutions Ltd. (NASDAQ:MTSL), a stock can build up steam with little to no news linked to that move. That doesn't make that stock a poor pick, however. Indeed, MTSL looks like it's turning into a homerun, and that alone is worth a look.... and maybe even worth a shot.
Just to put things in perspective, MTSL shares are up 50% since the end of September, and they're up 11% since November 19th - the last time any financial media source said a word about MER Telemanagement Solutions Ltd. (and that was an amateur-submitted, open-platform site). The last thing anything like news that we got from the company was on November 7th, which was an announcement that the company had submitted its quarterly results. Even crazier is that there have only been two press releases from MER Telemanagement Solutions since early October (and neither was particularly significant), and just that one opinion piece from November 19th.
So what, pray tell, was prompted MTSL to shrug off a downtrend and kick-start a rally during that time? This is where it gets interesting... and bullish.
Nothing ever happens in the market on accident. That's not to say everything that ever happens to a stock is the smart or right thing, but it's never an accident. While the reason may not be clear, there's a reason MER Telemanagement Solutions Ltd. are rising. If this bullishness follows the same pattern that other unexplained rallies have, the reason for the rally now will make perfect sense in the future. Maybe there's news on the horizon. Maybe there's a big institution buying shares up. Maybe the market finally realized the 70% drubbing it doled out to MTSL was overdone, and now it's correcting the mistake. We can also see the biggest buy-in days (including today) are on higher volume. Whatever the reason, the stock's in a rally that's now more than a month old, and arguably more than five months old. That's not something you can simply chalk up to a little volatility. It's a sign that the undertow has already shifted for the better.
Some traders will already see enough strength from MTSL to go ahead and take a swing; the support at the 20-day moving average line (blue) implies it's only a matter of time before the stock gets catapulted. For anybody on the fence with MER Telemanagement Solutions Ltd. though, a close above the recent ceiling around $2.80 should wipe away any lingering doubts. Anything above that mark, and the market's going to see it as a proverbial whole new ball game, where all the stock's Q2 woes don't even exist anymore.
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