DDR popped up in a Weekly timeframe System that I am currently "paper trading", back on 19/07 as a Buy. I've been closely watching it since that date. With the current price action, i.e. the >10% drop today, I thought I'd post a daily chart with some observations re the associated TA. See chart below.
The drop today hit a Low that corresponds directly to the 50% Fib retrace level of the up move from the Low of 20/06. Today's Close is very close to the 32.8% Fib retrace level. So was today's big drop just a shakeout associated with the current strong uptrend, or was it the start of a more sustained SP correction?
A similar drop, or should I say retrace, occurred back on 22/05. This retrace was also contained within the Fib% levels associated with the recent drop. Following that drop the SP had a consolidation period of about 8 weeks where the SP didn't fall below the Fib 50% retrace level. So the type of retrace that we saw today shouldn't be considered unusual for this stock.
This stock is still in a very strong uptrend, so if history repeats, which is what TA is based on, the stock should consolidate for a period of time between the identified Fib 50% level and the recent High. These levels are 785c and 630c. A fall below the 630c level and then below the 50 SMA level would suggest a more severe correction.
All IMO of course - Good Luck everyone.
DDR Price at posting:
$6.71 Sentiment: Hold Disclosure: Not Held
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