Clearing A Channel To Profits: Great Lakes Dredge & Dock
Dragonfly Capital | Nov 15, 2012 01:03AM ET
Great Lakes Dredge & Dock, (GLDD) may not trade as many shares as some more well known stocks, but this small cap stock shows signs of a major long term technical breakout warranting a closer look. The monthly chart below is a thing of beauty to a technician. The price is approaching the top of the 4-year ascending triangle at 8.30 with a bullish and rising Relative Strength Index (RSI), a positive and growing Moving Average Convergence Divergence indicator (MACD), and accumulation in the stock. Great Lakes Dredge & Dock, (GLDD) Monthly
A break over the top of the triangle has resistance at 9.69, the high from 2007 and then a target on the pattern break to 14.33. Sounds great huh, just need that break out higher. So what does the short-term picture look like. It is pulling back with support at 7.80. That happens to be a minor Fibonacci level on the monthly chart, the 76.4% retracement. A hold there and reversal could trigger an early entry into the long-term trade, against the level as a stop, since it would carry a Measured Move higher to 9.20.
Great Lakes Dredge & Dock (GLDD) Daily
Disclaimer: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Original post
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