Last week of May was the beginning of index play! If you were not able to catch up with that 3 week rally, you now have your second chance to join the resumption of the run. After 3 to 7 day correction depending on your preferred stock, it appears that the index stocks are preparing to resume its uptrend.
Taka a look @ $ALI's weekly chart, the stock after rallying for 9 months from March to December 2020, it retraced for 5 months until May 2021 and bottomed @ close to 50% Fibonacci @ 30.77.
As for the second stock in my Watch List, $DNL, the exit from the Darvas box was confirmed last 16 June. If this breakout is legitimate, most likely the price will return to its pre-pandemic level. Resistance 1 is @ 9.72. Resistance 2 will be @ 12.02. If you were able to enter this stock between 7.94 to 8.00, that is already ideal.
As for $DMC, you will see that the stock is in an uptrend. However, after breaking the 6.27 resistance and touching 6.70, the stock retraced for 2 to 3 days and bottomed @ 6.02. As you can see, the stock is trying for the second time to break the 6.27 resistance. Once successful, the next target will be to revisit 6.70 again. Resistance 1 @ 7.20 and resistance 2 @ 9.31.
Finally, as for $MEG, the stock is still in a downtrend line. After revisiting its support @ 3.01 yesterday, today it made a higher low and a higher high. Support 2 is @ 2.59. The stock has to break that trendline between 3.27 to 3.20 for it to have a confirmed trend reversal. Once broken, immediate resistance is @ 3.77 area. Decision for now is just to stand by and wait for an entry point.
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