DB: Contrarian long opportunityI'm pretty sure 97% of people were short DB lately, and pessimistic about its outlook.
I was on that bandwagon, and shorting every rally for some time, but the latest developments made me change my mind on it. I think we have a great opportunity to long the stock here, if not already in that is.
I'm in with a 0.25% risk position, and will add gradually to it, until I reach 1% exposure.
We have to monitor the activity here, but it's possible this was a terminal wedge or ending diagonal pattern, in Elliott Wave parlance.
We can add to longs on a break of Friday's close, to the upside, risking a drop under the lowest low, and add more once we break above the earnings resistance above, at around 13.72, using the same stop loss.
We can also buy dips under 12.38 but I think it's unlikely to happen here. We need to reach 14.89 within 3 days to confirm the bullish momentum in the short term.
Good luck,
Ivan Labrie.
