DEL Chart

I was going to post something about the chart and was surprised DEL didn't have a chart thread, especially since the chart is so interesting, so here we are.

I won't get into the fundamentals in any detail, they've been covered in other threads and I'm posting about the chart, but it of course helps if the fundamentals are good, and DEL has a proven viable model which is already in operation, is hugely scalable and it's in a sector the market loves - profitable green energy is hard to beat when it comes to market sentiment, so all positive there. If we can get some more contracts and expansion happening and we get priced as a growth stock, this could go bananas, but that's another story. In this context, the point is that the fundamentals are very positive.

As for the chart, it's looking very good, and very interesting.



The daily chart just looks stunning since the 22nd of July (not coincidental, it was due to news, that's when it came onto my radar and shortly after I started buying). It has a regular pattern of higher highs and lower lows, not going up in a straight line, allowing traders to jump in and out and longer term holders to accumulate strategically. Going up quickly but in a very healthy way. Incidentally, I saw someone posting about trading it and others being disgruntled about it. I don't know what the big deal is if people want to trade it - good luck to them, especially when there's such a regular, predictable pattern. I sold mine in the 20s after the last peak and bought back up in the teens last week, actually I now have more than 4x what I initially purchased back at 8.2c, congratulations to everyone who traded it successfully, and I hope those with diamond hands don't get too upset.

Anyway, after the better than expected news in July, the share price rallied, profit takers got active, it dropped but to a higher low, buyers excitedly came in, a new high was reached, and so on - we're now in the 5th cycle and it looks like we saw this cycle's low at 17.5c, and with any luck we'll soon beat the last high which was 22c.

What's very interesting is that each of these cycles has been more rapid than the last, which along with the higher lows and highers shows huge buyer enthusiasm, and the peaks of volume are on the price of the peaks, indicating accumulation.

Looking at the long term chart, the picture becomes even more interesting.



What's really exciting here is that we are coming up to the price DEL was sitting at for some time after it first started trading. Until July this year, DEL had never had any positivity in the chart at all. Regardless of the fundamentals or technicals of a company, many holders base their feelings and actions simply on where the price is compared to where it was and what they paid. When the price drops below what they paid, they are upset and tend to sell out when/if the price gets back to what they paid (they spend years feeling upset and are eager to get their money back as soon as it's possible - stupid strategy but it is the reality that this is human nature).

So, since July this year we have been clearing out all the disgruntled holders who entered since March 2022. We are likely to see resistance in the mid 20s (the range DEL traded in for about a year after the initial fall following its public listing - 26c is the obvious technical target but it will most likely land a pip or two off that exact figure). This could well cause it to pull back from the mid 20s to where it is now, as the glut of bored sellers who paid low to mid 20s sell out, panic because it drops a little and rush for the door. Of course, gleeful buyers will be all too keen to buy up and prevent it going too low.  Not sure if I'll be brave enough to trade that or if I'll just hang on and enjoy the show in case buyer demand knocks it straight through resistance, but it is the perfect setup for a cup and handle pattern, and assuming the right edge of the cup is about where the left is, the target should be about the same price as the all time high in the 40s it hit immediately after going live. I expect we'll see that play out next year, whether or not it plays out as a C&H - once 26c is decisively beaten, FOMO will kick in, no one will want to sell (if they weren't smart enough to hold out for the rally they would sell below or around what they paid, and if they are, they're hanging on tightly for the ride) and we have our rally.

After that, the fundamentals should take over in determining the next targets as we'll be in all time high territory without clear resistance levels, but hopefully we get priced as a growth stock in which case we could see multiples of where we are now. By some metrics the current price is fair value, but only if you ignore the obvious growth potential, which the market seems to have woken up to.

This company has one of the best combinations of TA and FA I've seen in a while.

Sorry if I sound rampy here, but it really is a good-looking situation and no one else had started a chart thread.