Sunday, July 18, 2010

My position DO follow up - July 19


On Friday, DO went down for 5.10%, disregard the Thursday's last 90 mins up (GS effect). A down solid bar formed on Friday with increased volume, indicating the DO is weak. STO is peaked and turning direction. MACD is at the top and haven't reversed yet. But the up trend is slow down and if the price keeps going down by next week, MACD should turn down. Remember, MACD is a lag indicator anyway.

The MA 14 is still above MA 25. The lower BB = 59.79. Currently I didn't see any significant support for DO. Target price will be around 60. On July 22 it will have ER. Critical day.

In sum, currently it's hard to say that it s 100% down, but at least it s turning to weak position, compared to the previous week. Price, pattern, volume all indicate the bearish trend, except the EMA ( divergent a little bit). Plus the ER is by next week. If ER is not good and price breaks down 60, I can foresee a free fall possible.

I am still holding it. Let's wait and see how it goes next week.

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