The quick recap is that DAKT (Daktronics) had weaker earnings and gross profits due to operational issues and capacity constraints. The result was a hard decline at the end of November. Your further research is required if there is any interest in the stock.
The daily chart shows a triggered MACD, but RSI still below 50. A successful break above immediate resistance and the SMA’s 50 and 200 would target 13.30. I have already added it just based on the look of the chart. But a ‘look’ is not a trade setup. I often take these chances with my own speculative funds.
The weekly view is interesting. It is in a long-term Cup & (sloppy looking) Handle. This would theoretically target 24 some day out in the future. That is fantasy stuff however, for NFTRH+ purposes. I simply included it for reference.
Other Considerations
The company makes those big scoreboards and smaller displays. It’s probably the least sexy thing I can think of.
The stock went Ex-Dividend on Dec. 11, which probably pressured the share price prior to yesterday.
As part of the ‘Handle’, DAKT has declined for most of 2014, making it a potential ‘Tax Loss’ seasonal play.
Buy Target: Current level if you are looking for seasonal bullish positions. Or a break and hold above the moving averages if you think DATK has higher potential than the daily chart’s target of 13.30.
Sell Target: 13.30
Stop Loss: Below yesterday’s low, which was 11.91
A reminder that chart based NFTRH+ updates are just trade setup ideas, which may not be revisited as the parameters are already noted. They are meant as a starting point for further research if interested. Fundamentals-based ideas are also provided for your further research only.
