Expert Clive Maund reviews the latest updates from digital printing company Data Communications Management Corp. to tell you whether or not they think it’s a buy.
Data Communications Management Corp. (DCM: TSX; DCMDF: OTCQX) is believed to have formed an intermediate base pattern over the past few weeks towards the lower boundary of a broad trading range, and with results due for release today after the close, it is believed that once if they will, it will at least make a run to the top of the trading range, which would result in good winning percentages from here.
Let’s start by looking at a longer-term three-year chart where we see a nice big cup and handle base forming from late 2019 to early 2021.
Breaking out of that base, it ran higher briefly before settling into the broad indicated trading range that has continued so far.
As it pulled back in range for the second time since its March high, its accumulation line remained buoyant and elevated, which is a positive sign that suggests it has just created an intermediate base at the above the support to the low end of the range. where he should be coming out soon.
On the six-month chart, we can see in much more detail the pullback from the March high and how it appears to have marked a cutting pattern above support since early-mid June.
After starting to move forward again this month, there was a sudden flurry of activity early in the day, which was no doubt due to the conference call and webcast, though, as has been up to ‘now been on relatively light volume, that doesn’t mean much and is the result of maneuvering ahead of the second quarter earnings release after today’s close.
With the technicals we reviewed suggesting a strong likelihood of a significant rally once the results are released, Data Communications Management is rated an immediate speculative buy ahead of them today. The stock is very lightly traded in the US OTC market where limit orders should always be used.
Data Communications Management Website
Data Communications Management Corp. closed at CA$1.11, $0.86 at 12:23 p.m. EDT on August 9, 2022.
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The foregoing represents the opinion and analysis of Mr. Maund, based on the data available to him, at the time of writing. Mr. Maund’s views are his own and do not constitute a recommendation or an offer to buy or sell any securities. Mr. Maund is an independent analyst who receives no compensation of any kind from the groups, individuals or companies mentioned in his reports. Because trading and investing in all financial markets can involve serious risk of loss, Maund recommends that you consult a qualified investment adviser licensed by the appropriate regulatory bodies in your legal jurisdiction and make your own due diligence and research when doing any type of transaction with financial ramifications. Although he is a qualified and experienced stock market analyst, Clive Maund is not a registered securities adviser. Accordingly, Mr. Maund’s market and stock views may only be construed as a solicitation to buy and sell securities when subject to the prior approval and approval of an advisor. in registered securities operating in accordance with the appropriate regulations in your area of expertise.
1) Clive Maund: I, or members of my immediate family or relatives, hold securities of the following companies mentioned in this article: None. I am personally, or members of my immediate family or relatives are, paid by the following companies mentioned in this article: None.
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