After correcting from May 2017 to late 2017, DNEX is once again trying to make a new uptrend. Will it be able to sustain the new uptrend and move higher?
This is a stock that I remembered last year I did an analysis and set a price target on it. I usually do not set a price target for stocks but on that occasion, the stock was given a price target by some research house. I set the target a bit lower to incorporate the crowd psychology.
I shall attach the analysis I did last year below but for now, let us take a look at what the charts are telling us about the technical outlook for DNEX.
We will first of all look at the weekly chart of DNEX. The chart below shows how the stock had a nice bullish run up in the first half of 2017 and then it corrected to late 2017.
Dagang Nexchange shot up in early 2016 and paused awhile in March 2017 to form a consolidation. It then broke out of the consolidation box to go higher. DNEX met its weekly measured move target and started to decline from there.
The downtrend for DNEX ended at the price support area of 0.40. The stock then broke a weekly downtrend line and moved higher before declining again. I believe the recent move up might have absorbed the resistance around the 0.60 area.
At this moment, DNEX is telling us it wants to start a new uptrend. Whether it can move higher or not, we will need to consult the daily chart for some guidance.
The chart above is the daily chart of DNEX.
At this moment, DNEX's share price is hovering at price support as well as the 50 MA. When I see the construction of the chart pattern like the above, I usually like to draw 2 lines to connect the prices. That way, we can see some kind of a triangle pattern.
If DNEX manages to stay above the 50 MA and price support area and subsequently break out of the downtrend line, then it has a chance to continue moving higher.
Which way it breaks out in the next few days will be crucial.
Charts with the Freestockcharts.com label are courtesy of Freestockcharts.com
Charts with the investing.com logo are courtesy of Investing.com powered by Trading View
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