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[madstocks5432]

DCTH - Chart Evaluation - From Yahoo Board


DCTH made a new 5-month weekly closing high and closed on the highs of the week suggesting that this coming week it will break above the intra-week high for the same period of time at 2.24 and likely head up to at least the 50-week MA, currently at 2.65. The company is expecting to hear from the FDA by October 15th regarding the NDA it submitted and if the response is positive the stock will have strong fundamental reasons to continue to the upside. Above 2.24, resistance is decent at the 2.65 area from the 50-week MA as well as from 2 important highs seen in 2008 at 2.65 and at 2.67. Nonetheless, if that level is broken there is no resistance until 4.11 is reached. Support is now decent at 1.78 as that was the low for this week as well as where the 50 and 100 day MA’s are currently located. It should be mentioned that the bears were unable to close the breakaway gap down at 1.73 meaning that if another gap is seen on this rally it will be considered a runaway gap and will give strong impetus to further upside. If the stock is able to generate a daily close above 2.17, the 1.99 level will become decent daily close support. Probabilities favor further upside.