For a HHHL, if it is successful, then the target price is the size of the height of the previous support to resistance lines - which is around 0.810 to 0.813. If this happens, then lots of 'gap' traders will be in, getting out at $1.
Now, while it did close above resistance in the HHHL setup, it doesn't 100% mean it is a confirmed break - it could well be a false break, as the volume wasn't really that good. This is the gamble we play - the odds are in your favour if a stock closes above the resistance line in a HHHL setup (but never guaranteed).
So, I will be watching closely to see if this holds - it may well dip down below - who knows - I trade when I see good signals - which increases the odds of success, but as a said, never guarantees it. Ideally, more volume today would have been good. That being said, all of my metrics are looking bullish:
1. Trading above 50-100-200 day SMA's 2. MACD open on the up 3. OBV on the rise
On top of that, a large gap to fill.
So, looks good in the short term. See how we go!!!
DGL Price at posting:
65.0¢ Sentiment: Buy Disclosure: Held
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