Delic Corp. (DELC:CSE; DELCF:OTCQB) is a stock that we last bought in the middle of February that has gone badly against us, as can be seen on its latest 6-month chart below. We have had to sit it out waiting for a turn, and the reason for this update now is that we may be on the point of such a turn.
The fundamentals for the company remain positive and the price/volume action here suggests that it may be marking out the second low of a small Double Bottom, having dropped back into a zone of significant support. Upside volume has improved in the recent past and the Accumulation line is strong relative to the price and not far off making new highs, which is normally a sign of internal strength. In addition, momentum (MACD) has broken above its moving average, which is often associated with a reversal of trend.
We should therefore stay long and the stock is regarded as attractive here for new buyers in particular, not just because it is now cheap, but because of the proximity of a clear line of support at about 34 cents, which means that any new position can be protected by means of a fairly close stop.
Delic Holdings website
Delic Holdings Inc. DELC.CSX, DELCF on OTC, trading at C$0.36, $0.29 at 3.02 pm on 16th April 21.
Originally posted on CliveMaund.com at 3.45 pm EDT on 16th April 2021.
Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years' experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.[NLINSERT]
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