$DO Bouncing Off Long Term Support
After consolidating for the past 6 weeks or so, $DO is ready to take off again. It is creating a cup and handle pattern on the daily chart and trying to break over the flat line on its weekly chart.
On the daily DO has settled into a neutral price channel. The red line is the long term price support base for the stock. If the bottom has not already occurred, it will somewhere around this price. The blue line is the breakout trigger price. A breakout above that price would suggest the bottom is in for DO and a long term bullish breakout is underway. The...
It is a simple reason and the price pattern support this argument. Now go to the technical aspects Past support now become support (it's not a play on words) look the chart and is easy to understand. But this idea need some weeks to mature because after the last price rally from 10.2 to 17.60 I need to watch some kind of price consolidation and that the market...
Oil is moving up and DO is coming up on a big crossroad where the prior resistance of $15-$15.50 area is going to be tackled. At the same time it is also at the descending trendline that started 3 years ago. It is flagging on the daily chart as well. Does it have enough power to correct its course and go up from here? A lot will depend on oil prices and earnings...
DO is a long term buy stock. DO is in the "Origin" support, BOOM or DEATH.