Monday, May 9, 2016

DCB Daily Chart.....A Rounding Bottom and a Tiny Flag !!!

Below is the daily chart of DCB and few insights from the chart;
  1.  A nice rounding bottom from Oct 15 till April 16 where it did try to break out above the overhead GAP resistance.
  2.  A pullback from their with small red candles all within the range of that big Green Expansion.
  3. Price nestled between the 200 And 20 EMA.
  4. If you were following this chart than a very good entry was at 75-77 level (marked in the yellow ellipse) where the price broke out of the 20/50 EMA,s and also the 20/50 EMA's crossed upwards signalling a positive note.
  5. There is a Gap below unfilled that might be a cause of concern.


A buy above 91.60 (200 EMA on the chart...this might stall the move) with a Stop tad below the gap at 84 is a good way to play this. The immediate overhead target is 101-103. Lets see how this pans out or will drift sideways for few days to make yet another pattern the CNH ! For the conservative people a very safe idea is to keep watching and buy the breakout above 103 if accompanied by volumes.

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