Matrix's (MTRX) largest segment is liquefied natural gas storage in Canada and North America. Obviously, with the North American energy boom, demand is very high for such storage. They also operate in utility infrastructure, as well as providing industrial services and petrochemicals to the energy industry. The fundamentals are improving (recently becoming operating cash flow positive), but that's enough of that for now!
This first chart is the long term weekly view.
We see that this stock broke over a HUGE pivot level in January and is currently consolidating in a sideways continuation range. The real key is the break over that gradual relative strength line. This is very strong action. Any real dip has our interest, but we may not get it.
This daily view shows MTRX trading in a wedging triangle and it seems to be biding time as the 50D moving average catches up to price. A break above this consolidation leads to an 18.50 target with other targets higher at 21,24 and 30.
**update** this pattern broke down and moved lower until we bounced on 4/2 at a critical support area.
The trends clearly point higher over multiple timeframes. Two other kickers: very little debt and this is currently trading at .5x sales. Yeah .5 sales with positive earnings and exposure to the hottest area of our economy. Nuff said.
UPDATE 4/2 : The stock has formed a bullish reversal at a multi year pivot area. It is a smaller signal, but the action will tell us whether this is going to work now, or if the idea is just flawed.
If you want to discuss this further you can leave a comment or tweet me @a_jackson on stocktwits @atmcharting on twitter
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