DNL eyeing to break the 78.6% Fibonacci Retracement level?

We saw the Bottom for DNL last December 18 and so far price has remained above the Kijun Sen line.

Based on Ichimoku, DNL is showing a weak bullish signal when price crosses the Kijun Sen line (red line on our chart). It is WEAK (with emphasis) because it happened below the Kumo.

Observe also that the 6.40 or the 78.6% Fibonacci Retracement level was a strong resistance last December 19 preventing the price from crossing. There is a bigger chance DNL will try one more time to break that wall. In case it will be successful then our next resistance might be at 6.50

You may test the water for DNL but careful with the Kijun Sen cross (price crossing the red line from above), because this will wipe out the weak bullish signal we saw and price may revisit 6.0 again.

Trade within your comfort zone and don’t chase the price.

Caveat!

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felix

A computer engineer by profession and loves to develop online systems/websites. A self-taught stock trader who loves to share his knowledge and enjoys learning, expanding knowledge and staying well-informed. Most often he uses candlesticks, Fibonacci Retracement levels, Ichimoku system on his technical analysis but loves to hear some rumors as well.

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