DNL near major resistance

D&L Industries, Inc.

DNL is now near the major resistance area (around 12) after a two month uptrend.

Trading Plan
- Take profit or scale down position.
- Use trailing-stop on remaining position.
- Buy the breakout on good volume.

DNL at resistance zone

D&L Industries, Inc.

DNL's price action last week has tested the resistance zone at 11.42~11.94 and formed up a minor trend reversal candlestick pattern, Tweezers Top.

Immediate support area is around the recent breakout level from its 5-month upward price channel and the previous resistance at 10.6.

Trading Plan
- Avoid for now and monitor for breakout or toppish confirmation.
- If currently in a trade, scale down position and profit run the rest with trail stop.
- Only buy-on-breakout if supported by volume (must be a breakout from the resistance zone).

DNL: Reversal Pattern at Immediate Resistance Area

D&L Industries, Inc.

A Dark Cloud Cover candlestick pattern formed up around the immediate resistance area of 7.9 (bearish reversal pattern). Factors indicating the importance of this signal are:

1. The greater the penetration of the first candle by the second candle (yes).
2. Both candles are marabozus  (yes).
3. The second body opens above a major resistance level (yes, above the immediate resistance at 7.9).
4. High volume on the second day (no, possible pullback only).

Pullback or retest of major support may potentially follow.

*LitWick pattern reliability: HIGH

Trading Plan

- Buy/accumulate the retest of major support near 7. 

- Initial TP should be around the 7.9~8. Profit run the rest with trailing-stop.

- Stop-loss around 6.7 or a few points below it to have at least 1:3 risk/reward ratio.

*If the pullback is only around 50%~61.8% retracement, observe any reversal pattern for a potential trading opportunity.

DNL: Breakout from Ascending Triangle consolidation

D&L Industries, Inc.

Breakout from Ascending Triangle pattern with measured target around 24 (24.2~24.5).

*Immediate support near the previous breakout resistance around 21 (21.25).

Previous post on DNL (July 16, 2015):
http://psetrends.blogspot.com/2015/07/dnl-consolidation-mode.html

Trading Plan
- If trading the breakout base on previous DNL post, hold position for potential target near 24.
- Buy the breakout for potential target around 24 (24.2~24.5).
- Stop-loss just below 20. Not a very good risk/reward ratio if entry is already at 22~ (1:1).

DNL: Consolidation Mode

D&L Industries, Inc.

DNL continue to consolidate in a Symmetrical Triangle pattern, a neutral pattern.
A breakout from this pattern around the 2/3 area of the triangle will have a measured target of over 24.

Immediate resistance area at 21~21.6.
Immediate support around 20.
Major support remains at 18.

*RSI at overbought

Trading Plan
- Hold current position for potential breakout scenario.
- Buy on breakout with strong volume.
- Avoid on pattern breakdown.