Data Communications Management Corp ALERT...

originally published Tuesday, March 21, 2023

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Tech Stocks Tech Stocks

Following a powerful high-volume advance during late February into early this month, Data Communications Management has been trading sideways in a relatively narrow range for about 2 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 1st upleg. Note the large bullish “dragonfly doji” that occurred about 5 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 website

Data Communications Management Corp, DCM.CSX, DCMDF on OTC, trading at C$2.02, $1.48 at 3.30 pm EDT on 21st March 22.

Posted at 3.40 pm EDT on 21st March 22.

The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment or securities advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market technical analyst, Clive Maund is not a Registered Investment Advisor or Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks cannot be construed as a recommendation or solicitation to buy and sell securities.