Don’t chase DNL, wait near support

DNL refuses to go back to the support level of the Descending Triangle and instead break from the resistance slope. It was last weekend that we thought DNL will retrace and confirm the Doji candlestick found on our weekly chart (see post here http://www.traderslogbook.com/dnl-may-develop-a-descending-triangle-price-currently-at-resistance/). I think there is no more chance for the Doji on weekly chart to be confirmed since we only have 1 more day left and so far it is a long green candlestick. This means that DNL will continue to move upward.

I think DNL will continue to move upward but it can’t go up in a straight line. We might see a retrace down to where the slope is (now considered newly found support). This is a good entry point for those who would like to ride with DNL. It would be best not to chase the price since this stock is already overbought with RSI or Relative Strength Index at 83

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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