DANG Earnings Pop

31 mar 2015

The downward sloping action/reaction channel has been broken with a favorable earnings report that caused price to gap far above the top of the channel. It's too early to tell if this downtrend has been broken. Price seems to have found resistance at an old Feb 2015 high of 9.61 and is now consolidating at this level. A break above this level would be good for bulls, and I would look for a short-term price target of 10.16 (significant level of historical support/resistance). Consolidation is usually followed by a strong price move, so this one could go either way.