I previously missed entry for a short trade when the price broke to the other side of R28. On the daily chart, price seem to be consolidating again for another move lower. With a trading update due in the 2nd week of February, I'm monitoring the R26 area for possible entry into a short trade.
Last Thursday (17 Jan) we saw the price break the support on the bear flag which had formed on the daily chart. With a Trading update expected in early February (which I'm expecting to be bad) I'm expecting further downside. I'm calling a short on DCP on a restest of the breakout level around R27.50. A price of R28.50 will be my signal to get out.Take profit target is R25.
The stock has become over-bought rather quickly thanks to the recent rally. The rising price has taken the stock right back up to a rather strong resistance line that developed during that horrible May price plunge. So what we are seeing now is a price that is over-bought at resistance...that is a sell signal. Here's the levels I've got in for my clients Sell...
Trade with caution on DCP, warns our Unum Trading Desk analyst Lester Davids! "The upward price momentum is strong however we trade just above the 200dma as well as at the prior support that was in place from November 2017 to May 2018. We also have an open "gap" at 3525c from the "gap" down on 4-May. The share now commands a 42 P/E . I advise caution on any...