Weekly Chart Analysis – Price action on the stock indicates that it is in an overall bull trend ( started in 2009 ), making higher highs and higher lows. Something I spotted was that market tends (high probability) to retrace to the 0.5 area before moving higher.
Current price action indicates a probable retracement more than a continuation of the trend.
Daily Chart Analysis – Differs a lot from the weekly chart, where it shows that price action has recently respected previous structure low (maintaining the trend characteristic). The market still has a leg room to prove the retest, hence an entry now wouldn’t be a wise one.
The ideal entry would be an exhaustion in retracement like the current one, It will provide a better Risk to Reward Ratio.
Daily Chart – Market has broken 2004 Highs with a strong bullish momentum that doesn’t seem to end? It holds an erratic bullish trend characteristic, as you can see sometimes market consolidates with a considerable amount of time and sometimes it doesn’t.
What do I mean? as you can see after the break of $1, makes tends to have a spurge growth in buyers (probably price followers) entering the stock this led to an immediate “unhealthy” growth in price which led to the drop of 80% (in the range of $2-1).
So what does current price tells me? The market tends to retrace sharply after a new “fast dollar break”. Thus, entries would be highly possible near the whole number.
Daily Chart – DBS has an overall bullish trend that is either losing some of its steam (short-term) or is trying to build traction. I would think the latter, as seen from previous price actions, market would have a high tendency to consolidate before making a new high.
So why did I say it might be losing some of its steam on the short-term? Pre-consolidation and post since the first circle shows that market has been growing 10% or greater, but on recent consolidation, market is growing at 8% or lower.
Then why do I think the latter is more true than the first? I believe market is ready to break into new highs and before doing so, it requires a chunky consolidated price actions (building traction/demand) before proving overall trend characteristic. In summary : this is a higher PROBABLE bet then the other.
I’d think market has a high chance to test previous structure low or form its new structure low. Thus giving traders a good entry opportunity so do watch out!