This blog is committed to the serious study and valid understanding of technical analysis and its objective application to stock selection, risk management and execution primarily in the context of trading stocks listed in the Philippine Stock Exchange (PSE).

Monday, March 31, 2008

DGTL 3/31/08 BREAKOUT

DGTL breaks away from its 3-month basing pattern on strong buying by broker ABN-AMRO. It advances 9.0% and closes at the high accompanied by a YTD record volume turnover. This stock has been in a secondary uptrend that began Aug-2007 followed by 2 steep intervening retracements exceeding 61.8% that accounts for a technically slow and dicey advance but a clear uptrend nonetheless. The height of the pattern and the Dec-2008 peak converges to offer a potential breakout objective of 1.84. With a new and higher support at 1.42, this stock's uptrend since Aug-2007 has so far defied the broad market downtrend that started Oct-2007.

PRICE AND TURNOVER
OHLC: 1.56-1.70-1.54-1.70
Change: +0.14 (+8.97%)
Value: 24,076,440 * Net Foreign Buying: +5,851,640

TECHNICAL ANALYSIS
Primary trend undefined * Intermediate uptrend * Short term consolidation (interrupted by a breakout) * Prior support 1.42 * Potential support (role reversal) 1.60 * Resistance 1.84 * Breakout (6.25% penetrating close) of 3-month range * Potential price objective of breakout move 1.84.

* Personal Disclosure: I own a trivial number of shares of DGTL.

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