As bitcoin (BTC-USD) has been surging, bitcoin miner MGT Capital Investments (OTCQB:MGTI) has been going nowhere lately, bouncing back and forth from about $0.04/share to $0.12/share. That is a big difference from its 5-year peak of $7.10 back in December 2017. After plunging to $0.053 in late October 2018, the stock has hit $0.12 in four distinct peaks, with the last in early February. Since then it has plunged to $0.042. Is the stock going to make another wave higher? What does the company do? What is its price correlation with earnings and revenue? What is its price correlation with bitcoin? And how will the dilution and SEC investigation affect the stock?
The graph of MGT Capital Investments shown below looks like it is a compelling buy as a comeback play and a great tradable security for playing the waves. The left side of the image below is the 6-month graph, while the right side is the 2-year graph. In the 6-month graph, the stock formed a bearish ascending triangle with a target of $0.045, which it hit a few days ago. The 6-month low was $0.028 on February 5. The W%R is -90.20 (very oversold), and the RSI is 32.46 (almost oversold). And in all the times the RSI and W%R were at similar levels, as shown by the orange lines, the stock rose within the next few days. First resistance is $0.078, and second resistance is $0.12. In the 2 year graph, the stock formed a descending triangle with a target of $0.167 in 6-7 months assuming a break above resistance of $0.075. The 200-dma of $0.147 may also serve as significant resistance. Thus, it seems very likely that the stock will rise to $0.075-$0.167 in the short run.