Some of you people probably know Denise she is very good at TA (technical analyse) I asked here to do one on DDEQ and here is what she came up with.
This is all her work and she says she is still learning it but to me it looks great please dig into it below
To: The Saint (who wrote...)
From: Denise D Tuesday, Jun 8 1999 1:42PM ET
Saint,
Without posting any charts for you to look at (takes a lot of time and I wanted to get back to you asap), here's my comments. I will try to be as descriptive as I can, and provide links to BigCharts when I can, k?
There are several early sell signals on the chart, and this is quite deep to be a retracement. For the market action to dip all the way back down makes me wonder if yesterday was merely a buying climax. However, the market action did get quite far outside of the upper bolinger band, which suggests the action got ahead of itself.
The action today has crossed below the trend line, which is a signal of a possible trend reversal to the downside. Mainly I'm worried that the action has gone below $5. Hope that it will close at or around $5.
10-Day Charts with Early Sell Signals
bigcharts.com.
• market action has moved below the 20-day moving average;
• MACD signal line has crossed below the moving average;
• If the faster (green) moving average crosses below two slower (blue, olive) lines, you would have another sell signal.
bigcharts.com.
• RSI has dipped below 50; this line usually acts as a support in an uptrend and as resistance in a downtrend.
bigcharts.com.
• Momentum has turned down for the first time since a week ago last Friday (May 28).
bigcharts.com.
• Stochastics show it to be in oversold and %K (red) below %D (blue) line, however, it looks like it might be turning up.
Entry points – watch for the following (in order of timing):
• MACD signal line (blue) crosses above moving average (red), esp. if it is "far below" (subjective) the zero line
• Stochastics – %K (red) "decisively" (subjective) crosses above %D (blue)
• momentum curving back towards positive
• RSI to cross 50
• faster moving average (green) crosses two slower moving averages
• look for a confirmed uptrend line (preferrably at 45º angle – too steep and it is likely unsustainable, too flat and it is not strong enough
I hope all this helps. If you have any questions, let me know.
Denise.
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