MITL Mitel Networks Business Communications Stock with Bullish Chart Pattern Pressure

by Olivier on April 8, 2015

The acquisition of MVNR – Mavenir Systems by MITL – Mitel Networks has the potential to create a new leader for converged IP communications for businesses and mobile operators. This is now the most interesting mid-cap play in the VoLTE and VoWIFI area.

I originally bought MVNR – Mavenir Systems but shortly after my entry it was bought out by MITL. I then sold MVNR and bought into MITL. Make sure to click on the MVNR link and re-read the company description to fully understand the story stock potential at hand.

On to the charts. The weekly chart shows the massive pattern pressure that has been building up. A break out of the bullish continuation triangle pattern would indicate a target of around US$ 20.00.

Click on MITL weekly chart to enlarge:

The daily chart shows how close we are to starting a move to the upside. All that is needed is a break of the green line drawn into the chart accompanied by above average volume. What makes me very bullish is the early stages of moving average expansion. This is a technical phenomenon that occurs at the beginning of new strong trends.

Click on MITL daily chart to enlarge:

Here’s an important quote I recently tweeted. I believe it captures the current situation best.

The price of a stock is not a function of value; it is a function of the way the market works. – Lowell Miller


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