Friday, June 11, 2010

Beautiful chart patterns emerge...

After reporting better than expected results on the 29th of April, 2010, DLB gapped up on massive volume and has since moved sideways to form a beautiful base. Although its fundamentals do not meet the strict "CANSLIM" criteria, its price action in addition to the massive price/volume spike on its last earnings announcement indicate that if the indexes turn DLB will likely move up to higher prices. Here is the chart and pivot buy point ($69.00):

If you look at the price/volume action withing the base you will also notice that the up days came on noticeably higher and above average volume when compared to down days. So all in all DLB looks to be a great buying opportunity to cash in on this potential uptrend.
Good luck and good trading!

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