DGAZ going up!
Updated
DGAZ has been following a very interesting and predictable trend starting back in August. It followed a channel pattern down from about $8.64 to just under $4.00 in about two months time; hitting major support and resistance lines on the way down. An interesting observation to look at with this channel is that it is following a cyclic pattern as well. The lows are almost in the same position throughout the cycle and the highs fall right in between each low. The channel is then broken and jumps to the previous high and falls back. This retracement could be the start of another channel; and if you look closely, you'll notice it follows the same cyclic pattern the previous channel had and bounced off the same support/resistance lines. We could see the price rise from $3.03 to just under $4.00 (~33%) in the next week. At this point it could either follow the channel (most likely) or it could break the channel and bounce of the next resistance line.
Trade active
Price locked in at $3.04 with a stop at $2.60.Trade active
Ok, well I cant say I called that big of a jump. But we already reached our target price and I sold 80% of the shares today at $4.06. I left 20% of the shares in today just for fun in case the channel is broken and the stock raises to the next resistance line around $4.81.Trade closed: target reached
Completely sold out today at $4.27. With that small green candle I'm thinking the market is approaching its resistance and will follow the channel. Lets give it a week or so and we can check back in when it bounces off the bottom of the channel again.
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