weekend charting 29-01-10, page-98

Hi bones, you got in just before me on ORD. I've also done DYL. (Note: I hold ORD but dont hold DYL & indicated disclosure based on ORD holding). See both below:

ORD's daily chart is showing mixed signals:

1. A bullish cup & handle formation which if valid provides a breakout target of about 8.2. (+)
2. Price so far remains above support formed by the base of the handle on the cup & handle formation at 5.4, and indeed is still above the bullish trendline currently at 4.8. (+)
3. Price closed Friday just on/above the 41 EMA. (+)
4. The Stoch has slipped below the recent uptrend. (-)
5. The conventional MACD has just confirmed a bearish crossover. (-)
6. The (3, 41, 1) MACD clearly suggests the price is about to cross down over the 41 EMA. (-)

So I my conclusion is similar to yours - some probable short term downside remains, of course as a holder I'd be looking for it to find support at 5.4. For non-holders, I'd wait for any downside to play out and look for support confirmation at 5.4 before entry.




DYL on both the weekly and daily charts looks bearish, and has broken through most of the support levels indicated except the 195 EMA on the weekly chart. This one looks to be a definite wait & see for confirmed signs of a reversal, which will probably require some positive company news to provide that. The main positive I'd suggest is that on the daily this week's downward price movement has pierced the lower bollinger limit quite sharply, so this one could be up for a nice but possibly tricky bounce trade when markets start pulling out of their current funk (but I'd put a tight stop under it in case it turns out to be a confirmed bearish breakdown indicated by the descending triangle formation):

Weekly:



Daily:



Cheers, Sharks.