Sunday, December 10, 2006

DLM Analysis for 12.10.2006

Monthly chart shows price to be in congestion since April 2004.

Exuberant buying since mid-september was met with resistance at the .707 fib level of $11.50. Doji and bearish engulfing candle indicates possible reversal here.

Possible 5 waves up into the .707 fib level of $11.50. Friday saw support at a prior LIS and the 200sma. Friday closed below the 20sma. IF we have 5 waves up, THEN look for an abc type of retracement pattern into the .618 level at $10.50.

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