The stock that has so much promise of what it could be in the future is still facing market sentiment issues in the present. The stock is not just bearish for the mid and long term it now also is bearish for the short term after it has broken down another support level. As what I always mention in the Stock Smarts training modules that we produce, the more support lines the stock breaks, the more bearish it is and the harder it will be for the stock to go back up again.
This does not mean that we are to avoid the stock forever but for now the stock is still expensive and the earnings do not commensurate the price that it can be bought for. If you really like Double Dragon and want to be an investor in it, I would suggest that you store up some cash and wait until the stock has clearly reversed and has stopped falling.
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Stock Smarts Manila — September 16 & 17, 2017
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Stock Smarts Qatar — November 16 – November 19, 2017
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Stock Smarts Taiwan — December 21 – December 22, 2017
Stock Smarts Cagayan De Oro — January 13 – January 14, 2018
Stock Smarts London, United Kingdom — January 26 – 28, 2018
The chart says the stock is still in a downtrend and as what I always say, a stock in a downtrend will continue to go down until proven otherwise. So from a position trader perspective we have an avoid signal on the stock. Also from a quick trading perspective we also have an avoid signal, this is because of the breakdown from 43.8 this makes the stock bearish over the short term.
For quick traders, because of the breakdown from 43.8, it has a possible downside target that could be found at 40. However, if 40 does not hold the stock could go as low as 36.
For that to happen it must go back to 43.8 and stay above those levels. If it happens to stay above those levels then the next possible target price for the stock would be at 46.5. But that is all contingent if the stock stays above 43.8. Let’s see how it goes in the next few days!
The best time to come in is by using technical analysis and to wait until the stock fully reverses and turns from bearish to bullish. That will only happen when the stock breaks above 49. So please take not of that price range.
The chart says the stock is still in a downtrend and as what I always say, a stock in a downtrend will continue to go down until we have a catalyst that will cause buyers to come in. As of this point in time DD has so much plans to grow but it would the proof that would make investors rally is when we see earnings follow the promises of growth. I really believe that is what’s going to cause a renewed interest in the stock.