DGLY is currently in a down trend that made it fill the Sept 2nd gap. It currently has 2 major opposing patterns.
RED: Descending triangle, continuation down trend pattern, not confirmed. Must break RED C-D for confirmation. Target is 3,63$. It also corresponds to August support line.
PURPLE: Failing wedge, reversal pattern, not confirmed. Must break PURPLE C-D for confirmation. Target is 33,64$ if confirmed, This target corresponds approximately to 1 year high.
I have a bias opinion towards the short option in RED. I do not believe that DGLY is likely to return to its 1 year high that quickly. On the other hand, profit taking has been going on for the last two weeks on descending volumes. Investors that bought too high are now ready to leave and take their loss.
Waiting a bit longer to see which prediction will take effect.
Comments
LeLaf
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20% of goal made.
LeLaf
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Seeing a little green today. Not making money right now.
LeLaf
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Well I think the down trend will continue. Shorting it.