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Diamond Foods, Inc. Message Board

  • paths_ca paths_ca Mar 14, 2013 11:13 PM Flag

    Resistance at 16.5, support at high 15's.

    So it fell after earnings and some numbers were thrown around in confusion, I may be a little guilty as well as I mentioned that it could finish the day at 16.30 to 16.50 yesterday. The fall in november left a large gap in the chart from 19.5 to 16.5 (or more like 16.60). The gap trapped and disappointed all shareholders holding at the drop, and those who bought early after the fall, so 19.5 and 16.5 will be resistance levels until trading goes through them again. I did not see much at 16.30 except that it was about a high of the day for four days in february, so in the absence of other clear levels one can suspect that since it did give a little resistance on the way up, it could give some support on a down move from above. All resistance levels become support levels after they are broken, however, 16.30 was never really a clear level. If one was to have found the fibonacci levels then they could give predictions of the support and resistance levels that could occur. Even though there was not a clear support level, I thought it would have to consolidate below 16.5 and therefore it could trade around 16.30 to 16.50 because of the resistance at 16.5, that was close to what happened that day.

    Back in December to February when the funds were serious buyers, there was resistance at high 14's or 15, so once above that, it will become a strong support. Reading the messages on twitter, one can see that people are hoping to be able to buy in mid 15 range, and with improving conditions there is likely to be funds and many others happy to buy in the 15$ range, so it made sense that the fall after earnings was stopped at 15.75. So now it is stuck between support at high 15's and resistance at 16.50. So i think it will go sideways for a few days until it can consolidate and wait for a reason to try to get above 16.50. Failing that it would drift down to high 15's where it would find good support. Once above 16.5, it could start a slow move upwards. So stay with this...

    Sentiment: Buy

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