Here’s a trade idea on $DY – October 18, 2024
This is Scott at Scott Trades on Twitter with StockMarketMentor.com and your Chart of the Day. I want to take a look at Dycom Industries ( NYSE: DY ).
Dycom ( NYSE: DY ) is in a well-defined uptrend and above all the major moving averages. We have clear support here on the 50-day moving average. The 50-day moving average has acted as support for the last couple of tests, so there is pretty clear support down here for long-term traders, right around that 184.00 zone for a breakout on Dycom ( NYSE: DY ).
I’d look for a move above $200.00. We want to see this sucker close above 200.00 and do it on volume. We can see how that zone has been acting as resistance the last couple of weeks here. In September it tried for 200.00, but couldn’t do it. It tested that 50-day moving average and within a couple of days, it moved right back under that $200.00 level.
So that level and the fact that it moved up so quickly tells me that Dycom ( NYSE: DY ) is definitely a stock that you want to keep an eye on. I like the last couple of days here, I like the fact that the volume is pretty telling in terms of how aggressive the sellers are. When the stock goes up, the buyers step in, we see that in the volume.
When the stock pulls back the sellers are there but they’re not really aggressive because we have low volume on the sell days. And then today, a green up day, higher than average volume on the buy. So the buyers are bubbling under resistance here on Dycom ( NYSE: DY ) and as I said, I think we want to watch for a move and a close above that 200.00 level on the stock.
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