PMO indicates DNR is at or near historically oversold level where reversals/retracements tend to occur. DNR oversold because of recent acquisition, which was compounded by the lack of a trend line support due to bullish run dating back to August 2017. Recent downturn stalled on the .618 fib retracement level for this long-term uptrend. Support needs to be tested again, so wait for confirmation from: (1) JMA crossing up on DWMA, (2) MACD crossover, and (3) PMO convergence toward signal line. Gap above may help push through resistance at 200-day TEMA.
Proposed swing setup:
Target Entry - Sub-3.30
S/L - 2.95
Conservative exit window: 4.15-4.20
Aggressive exit window: 4.52-4.75
Proposed swing setup:
Target Entry - Sub-3.30
S/L - 2.95
Conservative exit window: 4.15-4.20
Aggressive exit window: 4.52-4.75
Komen:
Th/Fri last week broke trend line support due to USOIL fallout, but DNR showed some resilience on Friday afternoon and pulled back to 2.95 - my proposed earlier stop-loss. I am keeping a close eye on this - if USOIL shows a rebound and signals that we found bottom last week, DNR should follow. Buy the breakout above 3.30