Thursday, 3 January 2008

The Market Socks it Back to DGTL

New Year! Sorry, I don't think too many people are inclined to add Happy at this point. Still, this blog wishes you the best for the year.

We thought DGTL was like a rocket ship that already lifted off. Turns out that this ship probably had a leak in its booster rockets.

It returned to breach the support at 1.66 momentarily. But this was all the moment a disciplined trader needed to confirm a cut loss. Yes it closed above 1.66 however we need to look at how it performed for the day. The intraday movement wasn't encouraging as it opened high yet closed somewhere in the middle. Add to that that it breached the support.

Will I buy this again? Sure, but it has to be convincingly strong first before I decide to enter again. Buying at a time when the whole market lacked adrenaline is not really the proper time to do it, especially when it closed just above the support but the intraday chart looks ugly.

Be patient. Wait for the right timing. THEN strike!

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