DKO Chart

Spec end of the market is complete trash at the moment. Not many turnarounds yet, and missed this one.

Best early indicators of a change in trend is the KST (Know Sure Thing) Indicator.
"Martin Pring's KST indicator combines the Rate Of Change Oscillator ("ROC") for four different time periods into one smoothed indicator. The aim is to signal major trend moves on a timely basis while eliminating most of the whipsaws associated with shorter-term oscillators. The KST indicator is primarily used to trade trends and should not be used in a ranging market. Signals are taken when KST crosses its signal line, calculated as a 9-month simple moving average of KST".

The signal line got crossed in December, which was the first indication that things might start improving. Can't see it myself on the chart, but I guess that's why we use indicators.


A little closer look at the action is now required, and for that, we can use the Parabolic SAR and ADX indicators.

The Parabolic SAR (Stop And Reverse) is a trend following indicator, designed to identify the turning point, or reversal, of a trend. It is shown on a chart by a series of small dots. If the dots are above the price, then the trend is likely to be down; if the dots are below the price, the trend is likely to be up.
The ADX (Average Directional Index) indicator is then used to indicate whether the current trend is strong or weak. If the ADX is reading between 0 and 25, then the trend is considered too weak to trade and the market is likely to be ranging. If the ADX is showing a reading of over 25, then the trend is strong enough to trade. If the ADX is over 30, then the trend is considered much stronger.

With DKO, the turning point was clearly on the 24th / 26th April, with the ADX now sitting just under 25.
Approaching resistance at 6 cents is not a great place to be getting in, so maybe wait for the breakout, and if it successfully back tests support at 6 cents, it might be a good time to get in. Hopefully it will take a few days to go through this process, which will give me time to catch up on DKO's fundamentals.

The way the market is, it's very hard to recommend stocks with any confidence, but DKO is ticking a lot of boxes and is worth considering. Seems an unusually grumpy forum, given that DKO is one of the few spec stocks having a bit of a run.
As always, DYOR.