This 6 month DTC chart is a perfect example of the natural beauty that you often see in a stock chart. This is a stock that showed up on
my scan for new fifty two week highs on stocks with heavy option volume, in fact it was number one in this scan as of the close last Friday. What I see in this chart is a
self similar pattern (not unlike a
fractal) with the most recent breakout looking almost identical to a previous 13% move. This places the near term target at $11.09 which is quite a premium from the $9.19 close Friday. Other aspects of the chart look nice that can be seen highlighted in the chart below (click on it).
In particular, check out that volume. Over the last few weeks the volume expansion in DTC is staggering. This is a undeniable confirmation of the move's validity. While we are talking about volumes check out these unbelievable March option volumes on Friday. The open interest and volume in the $12.50 strikes definitely suggests it will head for that price. Wow, up.
This was the 50th post here at
StockGeometry, thanks to the contributors (indigo, btb and namec) and the readers for your insight and support. So far I'm very happy with the way the blog has developed, cheers! -pythagoruz
In particular, check out that volume. Over the last few weeks the volume expansion in DTC is staggering. This is a undeniable confirmation of the move's validity. While we are talking about volumes check out these unbelievable March option volumes on Friday. The open interest and volume in the $12.50 strikes definitely suggests it will head for that price. Wow, up.
1 comment:
DTC pulled back as far as the breakout point today around 8.70. I would consider this normal and healthy so long as it doesn't move below this level. This action is commonly referred to as a throwback and many traders prefer to only buy at this level. The problem is they often miss the move since not all breakouts have throwbacks. I missed the opportunity to pick up shares/calls but any move higher from here would be pretty bullish in my book.
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