Sunday, March 28, 2010 5:31:12 PM
Re: DDSS - Technical Thoughts
Based on latest technicals, I would be very surprised if DDSS went anywhere but up, IMHO.
Here are the technicals that I consider:
PROs:
1 - RSI is consolidating at 40 within a very narrow range: whereas this occurs within the bears territory, the bulls have been able to hold at or above that critical level since mid-MARCH, as well as bringing RSI to higher highs since FEBRUARY. The underlying force is sustainably, but cautiously UP.
2 - The corresponding price action indicates a very strict adherence to the supportive trendline. So, whatever the fundamental reasons bringing DDSS back to the surface, the process is SLOW but consistently UP again.
3 - CCI, Wm%R and CMF have dwelled in the oversold area and are NOW marching in positive divergence against price.
CONs:
1 - Although RSI has telegraphed some bullish signs of reversal (positive divergence), it still has not flagged a reversal signal CONFIRMATION. Early confirmation would be up to the individual trader, some placing it at 50-crossing, others at 75-level attainment. However, so far, the predominant trend remains DOWN.
2 - Price has not committed to one or the other side of the consolidation formation, thus no BREAKOUT has occurred.
3 - "Pre-Rally Pattern" formation occurred in the aggregate occurrence of oversold conditions within the secondary indicators (CCI, Wm%R and CMF), but these signals are by nature lagging indicators.
4 - Institutional interest remains sub-par with OBV, A/D and ChiOsc lines nearing, but still BELOW their respective 21-EMA.
OVERALL - As indicated before, the current price consolidation pattern is coming to an ever-narrowing end, and the expectation is that is should shoot towards an overall BULLISH bias.
CAVEAT - However, the caveathere is that the longer it takes the consolidation pattern to breakout, the greater the likelihood that the directional price expectation to fizzle. In fact, the strongest breakout have historically occurred within 3/5 of the consolidation pattern completion:
DDSS - 12-Month, DAILY Chart:
- Dalcindo
Based on latest technicals, I would be very surprised if DDSS went anywhere but up, IMHO.
Here are the technicals that I consider:
PROs:
1 - RSI is consolidating at 40 within a very narrow range: whereas this occurs within the bears territory, the bulls have been able to hold at or above that critical level since mid-MARCH, as well as bringing RSI to higher highs since FEBRUARY. The underlying force is sustainably, but cautiously UP.
2 - The corresponding price action indicates a very strict adherence to the supportive trendline. So, whatever the fundamental reasons bringing DDSS back to the surface, the process is SLOW but consistently UP again.
3 - CCI, Wm%R and CMF have dwelled in the oversold area and are NOW marching in positive divergence against price.
CONs:
1 - Although RSI has telegraphed some bullish signs of reversal (positive divergence), it still has not flagged a reversal signal CONFIRMATION. Early confirmation would be up to the individual trader, some placing it at 50-crossing, others at 75-level attainment. However, so far, the predominant trend remains DOWN.
2 - Price has not committed to one or the other side of the consolidation formation, thus no BREAKOUT has occurred.
3 - "Pre-Rally Pattern" formation occurred in the aggregate occurrence of oversold conditions within the secondary indicators (CCI, Wm%R and CMF), but these signals are by nature lagging indicators.
4 - Institutional interest remains sub-par with OBV, A/D and ChiOsc lines nearing, but still BELOW their respective 21-EMA.
OVERALL - As indicated before, the current price consolidation pattern is coming to an ever-narrowing end, and the expectation is that is should shoot towards an overall BULLISH bias.
CAVEAT - However, the caveathere is that the longer it takes the consolidation pattern to breakout, the greater the likelihood that the directional price expectation to fizzle. In fact, the strongest breakout have historically occurred within 3/5 of the consolidation pattern completion:
DDSS - 12-Month, DAILY Chart:
- Dalcindo
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