technicals

Technically, DOM has completed a double top reversal pattern. The double top can be seen in the yellow circles and the yellow arrow points to the candle that dropped below the trough in between the two peaks of the pattern.

However, there are 2 levels of support just below the level of the pattern confirmation, the first being a strong one just below $4.50, the other being a level of resistance that may turn into support, however it has not been tested as such yet.

The other factor to note is the volume. It has been steadily declining and did not expand on the confirmation of the reversal pattern.

This leads me to think that the pattern may prove incorrect this time and that the levels of support will hold.

Personally I'll be out it it breaks $4.15/20 though.