------------ STOCKS TO WATCH - TUESDAY - JUNE 28 --------------------
DGIN is in a Stage 4 uptrend and a rising 20 day moving average is above a rising 50 day moving average with a comfortable distance between the two. This is the type of bullish alignment I like to see with the moving averages.
With this in mind, we have a 3 bar reversal off a recent price high, into a rising 20 day moving average. This particular chart pattern is playable nearly 100% of the time. Price is not only testing the 20 dma, it also filled the gap established back on 6/15. This is where you expect to see a bounce.
stockcharts.com[h,a]daclyiay[d20050327,20050627][pb50!b20!f][vc60][iut!Lah12,26,9!Lc20]&pref=G
Entry target $24.50. Price target $26.00. Initial stop loss $23.80.
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IOTN (short). IOTN is in downtrend. On a weekly chart (not shown), IOTN has set a series of lower highs. The daily chart will show considerable selling and both MACD and money flows have turned negative on the daily chart and are showing increasing weakness to the downside.
Price is now sitting just above the 50 day moving average and if price can drop below the 50, IOTN should be able to come down and test the recent lows.
stockcharts.com[h,a]daclyiay[d20050327,20050627][pb50!b20!f][vc60][iut!Lah12,26,9!Lc20]&pref=G
Entry target $7.91. Price target $6.50. Initial stop loss $8.20.
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