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!

DGTL Socks It To 'Em

The anticipation was correct, the timing a little too early. I'm talking about DGTL's breakout of the flag. For most of the day, it was stuck between 1.74 and 1.78. In fact, no one expected it to surge in the last few minutes, but surge it did.


The year ended with a bang for DGTL. Just look at the significant increase in volume! To think that I was prepping myself to buy DGTL on Jan. 2, 2008; where I was expecting the breakout to happen. I was tipped off by Broker M that it closed at 1.84 and it was in the run off period. Well, hell, I'm not gonna sulk and say I missed the boat, I'm gonna ride the wave! So I got some at the close. Who knows? Maybe there might be some oops trade on Jan. 2 for this.

But the real play here for me is NOT the flag as the return is quite small, but I'm riding on the breakout of the double bottom.

Again, be reminded that the area of 2.02 could meet some resistance before it proceeds to 2.20. Let's keep the faith and be vigilant of our stops!

DGTL on the Rise

Yesterday, Dec. 26, 2007, no one was expecting anything spectacular since the whole market was still on vacation mode as many were away from the market or at least their brains were on vacation. Yet, DGTL decided to breakout of the 1.66 resistance to end the day at 1.70 with volume. Today, the close was even higher at 1.74.

Two things have presented itself:

1. The breakout yesterday is legitimate as there was volume and it cleared the 1.66 level.
2. The action today is a consolidation of yesterday's move. In short, a flag has presented itself and may be worth playing for the very short term.

As I mentioned, there's a flag. The pole's high was 1.74. Today's high is 1.76. If we were to follow the typical flag being formed locally, the average consolidation of flags/pennants are 3 days. Therefore we expect DGTL to still consolidate tomorrow, with a maximum resistance at 1.78 (just follow the progression of the highs being made).

If by chance, the level of 1.78 would be surpassed tomorrow and there is significant volume again, 1.80 would be deemed a buy, but only for tomorrow. Why? Because if we were to follow the progression and the typical construction of flags, the breakout is expected to be on the first trading day for 2008; Jan. 2. By that time, the resistance would be at 1.80, so we adjust the resistance and targets higher by one fluctuation.

For tomorrow, the target would be 1.90 if it breaks out tomorrow. But since we do expect the breakout to happen one trading day later, then a break of 1.80 is a buy with the near term target at 1.92.

Personally, I still like to get this at 1.68 but I believe that at this point, what with a flag being formed, I find that scenario highly unlikely. Of course, it now all depends on how the major global markets would perform prior to our market's action.

It's That Same Old DGTL Feeling Again

Months back, I thought that DGTL was on the verge of breaking out and was going to give PLTL a run for its money, at least as far as the stock price was concerned. Well, that sure fizzled out and left me feeling very disappointed. Hold your horses, here we go again!


1.66 seems to be some area of resistance. I would feel more confident getting into DGTL once this barrier is broken and with lots of volume to boot!

Based on the pattern, I'm looking at 2.20 as my target but we have to be wary of the 2.02 level. There was a previous resistance at that level.

There seem to be two things going for it that indicates some bullishness on DGTL despite its books being in the red. First is the MACD where after months of it hovering in bearish territory, it now is in bullish territory and still going strong. The other would be the moving averages; specifically the 65 & 130-day MA. The 65MA is just about to cross above the 130MA, another bullish signal. As for the 260MA, it's at 1.60, which should now serve as support.

I don't really expect DGTL to kick in during the last week of 2007 as many are on vacation, or at least their brains are. But you never can tell, so unless we want another opportunity to pass us by, let's check out what happens to DGTL in the coming days. It could be a great way to start 2008.

PSE stock picks for June 25

Here we are again with our picks for the week. This time we saw 2 similar looking patterns on 2 different issues. First off the bat is DGTL.

As can be seen in the chart, we clearly see a cup w/ handle with a falling wedge acting as our handle. I'm just waiting for a breakout at 1.72. If it flies from there, I'm looking at 2.85 as the target. However, we must also take note of previous resistances at 2.00, since this is also a psychological resistance, and 2.10 as another resistance. After that, we should see DGTL fly.


Next on the radar is EIB. The pattern may not be as clear as DGTL, but it could also be worth looking at. I believe that there is also a cup w/ handle here. A symmetrical triangle serves as the handle. If it breaks out, I'm looking at a trigger price of 0.59 and seeing a target price of 0.78.


But between the two, I prefer DGTL. Okay, time to place your bets!