Small Descending Triangle for DD?

While we are seeing a sideways with trading range of 8.94 – 10.96 per share, it seems that DD is developing a Descending Triangle. As what stockcharts.com says “The descending triangle is a bearish formation that usually forms during a downtrend as a continuation pattern. There are instances when descending triangles form as reversal patterns at the end of an uptrend, but they are typically continuation patterns. Regardless of where they form, descending triangles are bearish patterns that indicate distribution.”

If in case the support will not hold then DD will move down and find the next support near 7.69 but if price will break from the resistance slope then we will see DD hitting another new all time high. On our weekly chart, it is waiting for DD to confirm the Dark Cloud Cover

RSI or Relative Strength Index is at 61

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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