“DASH” For Trash?

We spoke of the laggards making some sprints and dominating the best percentage winners yesterday in the discretionary space and how that may be a concern. Or maybe it will not. To keep it simple winners should be respected and laggards kept in the penalty box until proven otherwise. Candlesticks and certain patterns could help identify when a name could be potentially bottoming. I prefer to position capital where it is treated best, leaders, but the chart below of DASH is interesting. This is the second time it is breaking ABOVE a bear flag, and from FALSE moves can come fast moves in the opposite direction. The early November break above the bear flag went on to see an almost 20-handle run and this name could be setting up for another related move. As always manage your risk and a CLOSE below 49 should be used as a stop.

This article requires a Chartsmarter membership. Please click here to join.