Yum… 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.