STOCK CHARTS AND ANALYSIS – DNL
STOCK CHARTS AND ANALYSIS – DNL
In accordance with our Independence Day commitment, following is our Technical Analysis of DNL (D&L INDUSTRIES, INC) as of Dec. 7, 2015.
This is the first of our THREE for FREE for this week. (This is the third of our NINE IN THE EYES OF MINE. Two have been posted in my BooKAKA Premium Sentiment: PNX and SPH which we have identified as Low Risk, High Probability Trades).
As we stated in our last Analysis on DNL, we usually change our Fibonacci settings based on the 52-Week High and Low to have a very good idea of the stock’s price action on a long term basis. In the case of DNL, however, we are retaining our previous Fibo settings since we find the P10.80 level very significant as we will explain in later.
This stock has baffled a lot of Technical Analysts so we are using another tool (which we also use as one our TRT Screeners) the Holy Grail developed by a certain Prasad to help us monitor its price movements. Everytime we see a Buy or Sell generated, we share it to our readers in BooKAKA (www.bookaka.com).
TA – TRT Way – Straight from the Chart
POSITIVE
1. Bounce from P9.00. The stock continues to bounce after hitting the P9.00 level. As you can see from the Chart this is proving to be a Strong Support because it has been tested six times. For DNL this is a critical area. Once broken, it could send the stock to its next Fibo levels of P8.63 (38.2% Fibo and P7.98 (50% Fibo)
NEGATIVE
1. Trendline Break plus Structural Technical weaknesses. The stock has broken its uptrendline and exhibited structural technical weaknesses ever since. The stock has already made two Lower Highs and two Lower Lows which could signal a possible downtrend. If this is followed by another Lower High and another Lower Low then the Downtrend is confirmed.
2. Price action below 15 EMA & 20 SMA – Bearish – Short Term. The stock’s recent price action below 15 EMA & 20 SMA shows that it is Bearish on the Short Term.
3. Recent price action below 50 SMA – Bearish – Medium Term. The stock’s recent price action below 50 SMA shows that it is Bearish on the Medium Term.
4. Recent price action below 200 SMA – Bearish – Long Term. The stock’s recent price action below 200 SMA shows that it is Bearish on the Long Term and has now entered the Bear Territory.
THE HOLY GRAIL AS CONTRARIAN ON THIS STOCK.
As I previously stated, we use the Holy Grail to further validate our observations. The Holy Grail seems to be a Contrarian on this stock. Almost all Charts of DNL we have seen so far are Bearish on this stock. However, as can be seen from this Chart, the Holy Grail issued a Buy Signal last November 12 pointing to the candlestick of November 10. As of this time, the Holy Grail has not yet issued a Sell Signal.
NOTES:
1. Positive points are things that could work in your favor. Negative points are things that you have to watch out for.
2. On the opposite side of Pattern Targets are Pattern Failures. In case you decide to take this trade, always remember to set a stop loss based on your established risk tolerance level.
3. September is a very significant month for us. It was at the same time this year that we introduced Responsible Trading to mainstream social media. Starting September 1, 2015, since you are already familiar with our caption “TA – The Responsible Trader’s Way – No Hyping, No Bashing, Just Plain Cold Facts” we are changing this to TA – TRT Way – Straight from the Chart.
4. Before using our TRT Screeners (One of them is the Holy Grail) please visit my Profile in BooKAKA and read TRT SCREENERS – 5 GUIDELINES.
The Chart and Analysis is presented for educational purposes only and should NEVER BE TAKEN as a RECOMMENDATION to BUY, HOLD, or SELL.
Please trade with CAUTION, please trade with CARE. As always, IT’S YOUR TAKE, IT’S YOUR CALL. IT’S YOUR MONEY AFTER ALL.
Good luck on all your trades.
I’d call myself an intermediate trader and think stock buying signal charts really help me understand the market. It seems like you guys really understand these carts, and I loved how you broke it down into positives and negatives. My charts seem to do all the work for me, they tell me when to buy and sell based on the important information and have never failed me! Such a great software.
Hi Annie Frances, thank you for your comments. Responsible Trading is evidence-based trading. It is the application of critical thinking to identify low-risk, high probability trades. The Positives and the Negatives are the evidences that prove or disprove the existence of a low-risk, high probability trade
Let me explain Evidence-based trading in very simple terms. Let us say you are crossing a street and you are watching the traffic signals. Green means GO, Red means STOP and Yellow means Prepare to either GO or STOP depending on the prior traffic signal.
You only cross the street when you see the green light. Doing so when the traffic signal says otherwise is risky to life and limb. Same is true when trading. We only trade when the signal or evidence says GO.
When using TRT MAC (TRT Moving Average Crossovers) we only take the trade when we see a Golden Cross and we close the trade when we see a Death Cross.
When using TRT IAF (TRT Ichi Moku Analytical Framework) we only take the trade when we see a Tenkan Cross and the candles are above the Kumo. We sell when we see a Kijun Cross.
We have another analytical method TRT IMS (TRT Ich-Monics which I will explain fully in my forthcoming book – “Swing Trading with TRT.”
To summarize, these are the important evidences we look at in Responsible Trading: 1. Moving Average Crossovers 2. Price Patterns 3. Trendlines 4. Support and Resistance 5. Volume 6. Divergences.
Observing these evidences give us a higher chance of success in our trades. Managing the trade increases the probability of us becoming profitable traders.
Best regards,
Fred/@theresponsibletrader