Post Trade Analysis: DGTL

Digital Telecommunications Philippines Inc (DGTL)


Analysis:

• Early sign when the 4-day EMA crossed above the 9-day EMA on 12/18/2008.
• +DI crossed above the -DI at 12/23/2008.
• Confirmation signal occured on 1/7/2009 when the 9-day EMA crossed above the 20-day EMA. This is also where the extreme point rule breached when the stock closed at 1.02.
• RSI is above 50.
• -DI crosses above the +DI on 1/20/2009. However it's a false since extreme point rule was not breached plus the +DI crosses above again the -DI on 1/26/2009. At this point, extreme point was again breached on 1/27/2009 where the stock closed at 1.04.
• All EMA are on bullish alignment.

Trade:

• Purchased the stock at 1.12.
• Target price at 1.18 - 1.20 range. If the price hits, apply trailing stop on previous day close.
• Stop loss at 3-5% of purchase price for loosing trade. 7-10% loss is already very devastating.

Mistakes:

• Late entry. I should have purchased this stock at 1/8/2009.