DarioHealth Corp (DRIO)

[d0lphint0m]

If one follows charts and is disciplined then they use stop losses if certain prices are triggered. In the case of DRIO the uptrend line was at .15 which was broken today. Some may use a closing price to determine if the trendline was broken, others may use an intraday chart. Based on an hourly chart it was clearly broken. Based on a daily chart it rallied back to close just a hair below the trendline. I happen to share his opinion but am not convinced that the 10 day ma at .12 will hold. I prefer to see the 20 day (middle Bollinger band) taken out at .16 before I become convinced that we are moving up to test the 50 day ma at .58.
I am still long 1/3 of my position but I always keep in mind that this chart is NOT a chart that is making higher highs and higher lows. This is a stock that fell from $2.50 to .05 this year so for this to go through a consolidation pattern of any form is healthy. What that consists of can be one of many patterns...be it a rounding bottom, double bottom, triple bottom, V bottom (which is what it currently looks like) or numerous other bottoming patterns. One only knows what that pattern is by looking through a rear view mirror. Today was, in my opinion, a run into a resistance level that may or may not prove to be formidable, the middle Bollinger band or 20 day ma. Tomorrow may provide a clearer picture, but I can totally understand someone who is a student of technical analysis changing his tune because certain levels were broken on the chart. That is what TA is all about.