DESC Retracement

This stock chart of DESC caught my attention this weekend. I was trying to buy this stock a few months ago when it looked like it was going to fill the gap (see chart). Unfortunately, it didn’t fill the gap at that time, and my order never got filled.

Right now, DESC has made a retracement on descending volume back to its 50 DMA. Its been sitting right on the 50 DMA for a few days. There is also some support right below the 50 DMA. If the market starts to pick up, DESC could be a safe entry.

As always, stoploss orders or mental stops are a good idea. In this case, a sell-stop around $6.50 is probably a good idea. Also keep an eye on the Nasdaq and NYSE next week. Don’t engage in this swing-trade if it violates the supports.