Following a powerful high-volume advance from late February into early this month,has been trading sideways in a relatively narrow range for about two weeks now.
Superficially, after such a big advance, it might be thought that a top is forming, but this pattern has all the attributes of a bull Flag — the persistent heavy volume on the steep advance has been followed by a marked dieback as it has traded sideways, the Accumulation line has held up well, and the trading range can be seen to be tracking within a slightly downsloping parallel trend channel, in other words, a bull Flag.
This implies that the pattern will soon resolve into another powerful upleg that could very well be as big as the first upleg. Note the large bullish "dragonfly doji" that occurred about five days into the Flag, whose intraday low so far marks the low for the pattern.
Data Communications Management is therefore rated an immediate strong speculative Buy, and a stop may be placed beneath the lower boundary of the Flag just in case this interpretation is proven incorrect.
Data Communications Management's website.
Data Communications Management Corp. closed for trading at CA$2.02, $1.48 at 3.30 pm EDT on March 21, 2022.
This article was originally published on March 21, 2023, at 3.40 pm EDT at clivemaund.com
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