DXLG Destination XL Group, Inc. is a leader retailer in Big & Tall men's apparel. Company is publicly traded since 1988
The Monthly chart shows a buy setup in 7 different aspects
1) Massive buy volume in the month of July. Buyers are mostly institutions as you can see in the following link. As of today 70% of shares are held by institutional funds.
i.imgur.com/p6RRkAS.png
2) Absolute third bottom since 1998. The last time DXLG was at this price was during 2009 crisis. This is the definition of buying the dip.
3) Tom Demark Sequence reached 9th sequence. For those who know about TD Seq , numbers 8 and 9 indicate a reversal
4) 3 different divergences are formed at this level. MACD , VWMacd & MFI . This means price has to be higher according to these indicators but instead it went lower and created a divergence
5) Williams Vix Fix Indicator is used to identify the bottom of a trends. As you can see from the green bars that we reached the bottom and a reversal is imminent.
6) SToch RSI is bottomed and now picking up
7) MACD in the red area heading towards green
Cash Runway Analysis
Stable Cash Runway: Whilst unprofitable DXLG has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: DXLG is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 50.4% per year.
Company got hit hard by COVID-19. Brick & Mortar stores had to close temporarily but sales continued through website and Amazon.com
In a medium term trade(1 - 2months) you can target a reasonable profit of over +25%, the longer you hold, obviously the more profitable it gets according to the past data.
As you can see the stock traded between $0.3 / $15 in the past.
Please do you own due diligence and remember it's a chaotic year, so always look for safe plays.
The Monthly chart shows a buy setup in 7 different aspects
1) Massive buy volume in the month of July. Buyers are mostly institutions as you can see in the following link. As of today 70% of shares are held by institutional funds.
i.imgur.com/p6RRkAS.png
2) Absolute third bottom since 1998. The last time DXLG was at this price was during 2009 crisis. This is the definition of buying the dip.
3) Tom Demark Sequence reached 9th sequence. For those who know about TD Seq , numbers 8 and 9 indicate a reversal
4) 3 different divergences are formed at this level. MACD , VWMacd & MFI . This means price has to be higher according to these indicators but instead it went lower and created a divergence
5) Williams Vix Fix Indicator is used to identify the bottom of a trends. As you can see from the green bars that we reached the bottom and a reversal is imminent.
6) SToch RSI is bottomed and now picking up
7) MACD in the red area heading towards green
Cash Runway Analysis
Stable Cash Runway: Whilst unprofitable DXLG has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: DXLG is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 50.4% per year.
Company got hit hard by COVID-19. Brick & Mortar stores had to close temporarily but sales continued through website and Amazon.com
In a medium term trade(1 - 2months) you can target a reasonable profit of over +25%, the longer you hold, obviously the more profitable it gets according to the past data.
As you can see the stock traded between $0.3 / $15 in the past.
Please do you own due diligence and remember it's a chaotic year, so always look for safe plays.