The 56 Point TA; Charts With an Attitude Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The 56 Point TA; Charts With an Attitude

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Cornstock who wrote (7528)	11/12/1997 11:31:00 AM
From: Doug R	Read Replies (3) of 79383

The Chart, DIGL has been moving quickly and steadily. The uptrend is advancing at a rate that identifies it as a strong momentum play. It is currently testing the key psychological 20 dollar milestone area. The momentum strongly suggests that the stock will handle this challenge relatively easily. The stock began it's upward climb with a classic stairstep pattern and has only recently started to break into a more typical pattern of a sawtoothed climb. This transition from stairstep to sawtooth is a bullish signal that is created when the trading volume begins to pick up significantly suggesting that the stock is now receiving alot of positive attention from the investment community. A solid move through 20 would lead the stock to an initial target of 28 to 32. Current trendline support reaches 20 in 2 1/2 weeks while the top of a well defined channel is at 24 in the same time. The channel is rising at a monthly rate of 10 to 12%. A nice symmetrical triangle (or pennant) has formed in the last 3 weeks and is very near the apex. This formation is a good continuation pattern and is bullish for the outlook of the stock. The Technicals The SMI configuration is very strong. A strong uptrend in the short-term is reaching the level that will push the intermediate-term SMI higher. The intermediate SMI is very solidly above the bullish threshold and as it oscillates along is setting up a symmetrical triangle. A breakout to the upside of this triangle is likely within 2 weeks. That event would correspond well with a breakout of the price to beyond 20. In a strongly trending stock the 89 day MA/MLR will of course be positive. In tracking the trend, I use a 13 day MA/MLR to monitor the stock's progress and strength. DIGL's 13 day MA/MLR is at the point of a new crossover which occurs at the start of each leg up. This is a good buy signal to take advantage of the recent pullback in price. The 3 day Bollinger Bands have come together suggesting in imminent move. All periods of Bollinger Bands are positive and show no reason for DIGL to falter. The commodity channel index shows no reason for the price to falter as well. The 13 day CCI is bouncing above the +100 level regularly and is currently trending toward another bounce up. A look at the MA grouping shows bullish configuration with a current compression of the 5 and 8 dMA's. Most of DIGL's moves begin off a compression of the shorter term MA's, only reaching to the 13 dMA at most. MACD is above the bullish threshold, not currently turned up so a compression to the 13 dMA may be expected before the price begins up. Accumulation/Distribution is in all time high territory and trending up strongly. MoneyFlow has come back down from overbought levels and would currently be considered neutral. PVI/NVI are trending more or less together. This usually occurs in stocks that are soundly trending for the long-term but since DGIL doesn't have a long-term history yet, this indicator with this configuration would have to be deemed neutral as well. The 144 day RSI (as little of it available as there is) is trending up above 50. There is a good uptrend in all other periods of the RSI with triangulation occurring that coincides with the same in the SMI. The 3 day RSI has established a hinge that suggests a move up is approaching. At this time DIGL is prepared to continue its currently strong uptrend and attempt to put 20 behind it. The technicals indicate that as it does so, it will become technically stronger and add to its momentum. It seems that DIGL is preparing to make a technical attempt at a very significant move in the short-term that has very favorable intermediate-term implications. Buy any security at your own risk. (That's a disclaimer)

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next