Australia's largest stock trading and investment forum Australia's #1 stock forum

DKO dakota minerals limited

0.00%

5.6¢

"Approaching resistance at 6 cents is not a great place to be...

First 2 Last

Share
Profile

Follow
Sector

35,472 Posts.

2863

09/05/17

21:08

Post #: 24580599
Share

Originally posted by peejayhercules ↑

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.

View attachment 572460
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.

View attachment 572478

Expand

"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"

Agree, and that hammer reversal was classic pilot entry time.

Need next news to break through 6c and test as support as you say would be good.

I also had a reverse H&S break at 5.5c. So should be support there now.

Been a very positive forum lately as DKO tick some boxes from a very low EV, just that one silly thread today.

DKO Price at posting: 5.8¢ Sentiment: Buy Disclosure: Held
8 Upvote

0 Great analysis

Reply

Top Stories

WC8

Wildcat’s PFS elicits lacklustre response

HotCopper Trends: Vection's $7M, Liontown dips & Wildcat PFS

EMD

Emyria Advances kicks off National Rollout with Avive Health Agreement

ASX Market Close: Index treads water as Energy stocks lead

BEO

One of the biggest jumps today is the most obscure: Beonic Ltd up +65%

First 2 Last

Add to My Watchlist

What is My Watchlist?

A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.