I don't know a Bollinger band from a rubber band. As far as support goes, I thought that is what well endowed woman had in their bras. I hear brokers say this stock should have technical support here or their and I would laugh. But as much as I try to dismiss it , it seems to have relevance to how stock trades and where the resistance is. I am starting to become a believer. I think in theory that is the great thing about a chat board under ideal circumstances. People like myself who get technicals and technical types who may get some industry info.
I believe the "Heissenberg Uncertainty Principle" applies to technical analysis. The observer influences the events unfolding. TA inclined investors watching common charts will react in a common manner. Their shared belief will cause the TA to be a self-fulfilling prophesy. On this basis alone, one must accept that TA has some merit.
News moves this stock. For example, 802,00 shares traded on January 8th as a result of the positive announcement and DPAC surged 18%. The December 4th announcement is another example.
Merits of TA notwithstanding, I do not want to be sitting out waiting for positive signals when the next announcement hits. Here's my prediction for mid-March: "DPAC Technologies Reports Fourth Quarter Cash Earnings of $3.0 Million or $0.15 Per Share". If I'm right, I would then expect a million share day with an increase in share price of more than 25%. That may be the day we crack $5.
Why? The fundamentals implicit in the two aforementioned announcements. They added a second shift because they needed to increase production therefore unit sales are up. Ted cited firming memory prices therefore margin per unit should be higher. Next, the new contract smells like new and unexpected business. Finally, DPAC is higher leveraged with respect to operations. The second shift production is gravy as the fixed costs were already covered by the existing first shift business.
FD: Fully invested to my personal diversification limit