Sunday, March 29, 2009

Trade: DBS

I took my losses for DBS on Friday.
DBS weekly:

 
DBS broke the support around $7.65 to the downside only to rally back above that support.  It is now in the value zone.  The impulse signal is green, preventing any shorting.

DBS daily:
 
DBS has rallied all the way from the bottom channel to be near the upper channel.  It made a new high of $8.90 but closes near the low at $8.56. 

 
The last two price bars seemed to have formed a “dark cloud cover” pattern, a top reversal signal.  The last bar opened higher than the high of the previous session and at the end of the session, it closed near the low of the session.  The real body of the last bar also did “pierce” below 50% of the real body of the previous bar.  The only imperfection, perhaps, was that the real bodies of the two price bars could be longer.

Other technical signals came into play as well – the MACD-H has turned down and the force index is showing a divergence.
Anyway, I sold my holdings and eagerly waiting to buy back at the value zone – between the two EMAs at around $7.85.

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