DXC. Broken downtrend and consolidation range #DXC. 09.06.20 Now from my point of view it's time to pay close attention to this paper. DXC is an American IT company created in 2017 from the merger of the assets of Computer Sciences Corporation and the HPE Enterprise Services division of Hewlett Packard Enterprise.
Since September 18, the paper has been in a protracted downtrend (historical high from 21.09.18 $96.75). On the graph this downtrend is shown with a red line. In the period from 23.04.20 the paper entered the consolidation stage in the range of $14.8-$19.4, and within this consolidation the downtrend was broken (the figure of the descending triangle 15.07.20). The main volume of this paper during the down-trend period has passed at the level of $17.15. What can be clearly seen in the chart.
On this week, the 50-day EMA was tested on a large volume, and after the weekly consolidation, the upper limit of the consolidation level at 19.4 was broken since the third time. This break-up occurred also on the higher volume on the quarterly report, which was positively received by the market (seekingalpha.com).
The idea proposed below is of a long-term character and looks as follows:
1. Buy at current levels with a stop at $18 (a minimum after the break-down of 50-day EMA for the last 4 trading sessions) -10% of the current prices.
2. TP1 at 23.5-23.7 (this is the 100-day EMA level) +20% to the current level
3. TP2 - 26.1. I expect that the hike to this level will be quite fast and without long term pr-trading, as there were no trading volumes and resistance levels in this range. +30% to the current prices
4. TP3-28.8 That's level one fibonacci correction. +44% to current prices
5. TP4 - 37. Trade level of the end of 19 years. There was good volume, too. +90% to current prices.
6. TP5 - Range 48-50. Closing of the gap. +140% to current prices.
