Tuesday, July 3, 2012

Short DD

This is an 80-90% probability trade.  Short Dupont.

Dupont (DD) has been maintaining a pattern of lower highs since early 2011.  There are numerous technical factors strongly suggesting that it will lose about 15% of it's value over the next 1-2 months.  In June it made a 61.8% retracement of the drop it had from April to early June and since mid June has done another 61.8% retrace, very classic Fibonacci ratios.  Click on the attached chart to enlarge it and to see additional information.