Sunday, April 13, 2008

DBS Potential Island Reversal Setup

After the gap up breakout on 2nd April 2008 price has been trading in an island range between $19.94 to $19.20 and seems to be stagnating around the 200 days EMA line. The MACD lines crossing at overbought region and the 256.56 fall in the Dow Jones Industrial Index may be the catalysts to ignite a powder keg that has been dormant resulting in a gap down. Gap support at $18.64 may be tested during the price retracement. Next few days will be interesting.

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