Looking for a good volatility squeeze? Try DuPont (DD). (August 19, 2016)
DD
In this Free Chart video we’re looking at DuPont ( NYSE:DD ). Why? Because it’s in a volatility squeeze. A Dow component; I looked at all the Dow stocks, as I typically do. Some of them are up, some of them are down, none of them are really offering good trading possibilities, except this one. So as long as the stock stays above this 50-day moving average, you can see it fell back but caught it at the 200, but generally speaking the 50-day moving average is working. So as long as it stays above that area this is a stock that you want to own. If the stock breaks out above 70.00, that’s a breakout buy, then you keep your stop right underneath this level. As it keeps moving for a bit you raise your stop back up into the middle.
The bottom line is this: I don’t look at DuPont ( NYSE:DD ) as a buy right now. On Friday it traded higher but Thursday’s VOLUME was higher. So that always makes it a little bit suspect; when on a continuation day volume was light, you’ve just got to be a little bit more careful of it. But some on that I chalk up to being summertime and some of it is just like not that much enthusiasm for the market; this looks a little bit like the S&P 500 here over the last few weeks. Anyway, check this out on a breakout. Until then I would just not do much of anything.
Free Chart