DRO - Chart and TA., page-1564

As per my previous post I was expecting a green day yesterday.





I believe $1.40 needed to stay uncrossed for it to confirm its strong support status but it was crossed and a lot of volume occurred below it.

Although zooming in to the 15min chart shows relative improvement, Hourly and Daily still haven’t completely turned.

the hourly seems to be closing the bollies, while the daily is still plotting at the lower band of the bollies. A good sign of the daily is that the hammer did bounce from the bottom bollie.

Now, and using the obvious disclaimer, it is IMO that the gap at $1.10 might be closed. I base my “guess” both on what I have learnt about gaps (I’m a believer that not ALL gaps need to be filled) since this one doesn’t seem to be a runaway gap… but also based on fundamentals (sorry if is sacred for the chart thread to stay away from the fundamentals) since that price range would bring DRO to a more reasonable valuation for its PE PS ratios.

I would wait and see for a few sessions to confirm direction at this level. As per one lesson from Slick: it is better to confirm direction, don’t try to fish on still water, wait for the raising tide to come… obviously picking the bottom is very difficult (Lucky for those if it was indeed $1.3)

GLTAH.