Monthly Archives: December 2007

DLM

DLM: Del Monte Foods

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ticker DLMYum… Canned pineapple. 🙂

I have a chart of DLM and basically I think it’s about to pop OR drop. I’m leaning towards the popping side however. This could be an extremely short term trade, but imo, very profitable.

The looks to have formed a nice bowl shaped basing pattern which is coming up on it’s first level of resistance, R1. Del Monte has been consolidating nicely since early December and if it can break through R1 there is potential for it to break through R2 and possibly make it up through R3.

Del Monte’s RSI and MACD are both trending bullishly with the RSI just now crossing the 50 mark and MACD having crossed around the 17th.

Buy once there is a cross through R1 at around $9.45. With a trailing stop loss in tack, watch for it to cross through R2 at maybe $9.60 and then finally R3 @ $10.45.

DLM has the potential to run up through all resistance levels and higher but chances are not likely.

Edit: Jan 12, 2008

It looks like a cup with handle might be setting up?  4 more days will mean the handle has moved 1/3 of the cup’s advance.

DPDW

DPDW: Deep Down Inc

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deep down incI feel Deep Down Inc is looking pretty appealing right now.

There are a few reasons:

Looking at a fibonacci on the chart the price has gone below the 38.2% marker but is now coming back up and hit the 50% marker today. Additionally, during the dip which took this baby past the 38.2% mark volume was average to lite.

DPDW appears to be trading in a bullish channel and bouncing up from the bottom support line of said channel.

MACD is about to have a bullish cross.

RSI is on it’s way up from a bottom.

    I would consider buying this at the current price of $1.36 and riding it up until the touch of the channel’s resistance which appears to be $2.00 or higher but that could change. A semi-tight stop loss could be used on this guy to lock in any potential gains.

    SRU.TO

    SRU.TO: Starfield Resources

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    sru.toGot a chart of Starfield Resources here.  This one is a penny stock but I think it looks pretty attractive.

    The $1.30 level played a strong role as a support/resistance level during the past 7 months and just recently broke through it with medium volume.

    RSI is shooting up and just passed through 50 which is a good sign.  The slope of the advance might be a little too vertical though.

    MACD is about to have a bullish cross which is very strong.

    I would say buy on the way up above $1.30.  Keep and eye on the $1.55 level and if it makes it through watch for resistance @ $1.70.  With a tight stop loss you can ride this through.

    GS

    GS: Goldman Sachs

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    gsGood ol Goldman Sachs on this update.

    First off it looks like there is a symmetrical triangle that formed beginning in early November. The widest point measures around 55 points and which *should* mean there is at least 55 points of upside once it breaks out.

    The symmetrical tringle is known to be a continuation pattern and while the financial sectors have really been eating it lately, has been trending upwards on the short term — since mid August. This symmetrical triangle formation might mean there is some more upside to come as the market consolidates now.

    RSI looks OK. Just OK. Only two touches which is enough to make a trend, but not a very strong one.

    According to the accum/dist chart, there has been steady accumulation since GS bottomed in mid August.

    I would say buy on the next touch of the bottom support of our symmetrical triangle which looks like it should be around $213 or so. Ride it up as far as you can with a nice stop loss as usual.

    PSUN

    PSUN: Pacific Sunwear of California

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    psun

    We are looking at good old pac-sun on this one.

    Looks like there is some resistance at about $17.10. The next level of resistance is around the 18.00 mark.

    RSI is on it’s way up and recently crossed the 50 mark.

    MACD is also in an uptrend and looks strong.

    Buy when the price crosses $17.10, watch for resistance @ $18 and if the price crosses the $18 mark put a medium stop loss and let it go.