Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
🤯 Perficient is up a mind-blowing 53%. Our ProPicks AI saw the buying opportunity in March.Read full update

Dorman Products: Derivative Play On The Automobile Market

ByDragonfly Capital
AuthorGregory W. Harmon
Published 09/18/2012, 04:22 AM
Updated 05/14/2017, 06:45 AM

Everyone has their derivative play on the automobile market. Mine is Dorman Products, (DORM). Take a look at the daily chart below. Moving out of a base from February through July, it is consolidating that move in an ascending triangle under resistance at 30.25. This is very near the initial target out of the blue box. The projected move on a break of that triangle would take it to 33 with a Measured move to 35.50 above that. It has support for further upside from a bullish Relative Strength Index (RSI) but the Moving Average Convergence Divergence indicator (MACD) is stalling in its attempt to move positive. But pulling back to the weekly view the chart shows a clear motion

Dorman Products, DORM
DORM_1
from the lower left to the upper right on price and with strong indicators supporting more upside. There is one possible catalyst to this picture as Autozone, (AZO), reports earnings Wednesday morning and could impact this stock. Look for the break over 30.25 as your entry.

Dorman Products, Weekly
DORM_2

Disclaimer: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

Original post

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.