When the Price of Dycom Industries DY Talks, People Listen

December 06, 2021, 15:00 pm ET, BY John- Contributor| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

This is not EF Hutton, but it could be more #powerful.  A picture speaks a thousand words, they say, and the #priceaction of Dycom Industries (NYSE: DY) tells an important story.  The movement tells us where investors perceive value, or the lack of it, and if we pay attention we can capture opportunity.  The data below for DY can be used as an example, and demonstrate how to do this for other stocks too.  This data was current at the time of publication, but it is not updated in real time here. If you want real time updates, or data on a different stock, please get one here Unlimited Real Time Reports. 

Longer Term Trading Plans for DY

• Buy DY slightly over 87.26 target n/a stop loss @ 87.01. Details

The technical summary data tells us to buy DY near 87.26, but there is no current upside target from the summary table. In this case we should wait until either an update to the summary table has been made (which usually happens at the beginning of every trading day), or until the position has been stopped. The data does tell us to set a stop loss 87.01 to protect against excessive loss in case the stock begins to move against the trade. 87.26 is the first level of support below 92.49, and by rule, any test of support is a buy signal. In this case, if support 87.26 is being tested, a buy signal would exist.

• NONE . Details

NONE .
There are no current resistance levels from the summary table, and therefore there are no Short resistance Plans which tell us to short upon tests of resistance. Resistance levels have broken higher and unless the stock reverses lower and below support levels again short positions look risky.

Swing Trading Plans for DY

• Buy DY slightly over 93.20, target 103.58, Stop Loss @ 92.93 Details

If 93.20 begins to break higher, the technical summary data tells us to buy DY just slightly over 93.20, with an upside target of 103.58. The data also tells us to set a stop loss @ 92.93 in case the stock turns against the trade. 93.20 is the first level of resistance above 92.49, and by rule, any break above resistance is a buy signal. In this case, 93.20, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short DY near 93.20, target 87.26, Stop Loss @ 93.47. Details

The technical summary data is suggesting a short of DY if it tests 93.20 with a downside target of 87.26. We should have a stop loss in place at 93.47 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 93.20, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

Day Trading Plans for DY

• Buy DY slightly over 93.20, target 94.07, Stop Loss @ 92.98 Details

If 93.20 begins to break higher, the technical summary data tells us to buy DY just slightly over 93.20, with an upside target of 94.07. The data also tells us to set a stop loss @ 92.98 in case the stock turns against the trade. 93.20 is the first level of resistance above 92.49, and by rule, any break above resistance is a buy signal. In this case, 93.20, initial resistance, would be breaking higher, so a buy signal would exist. Because this plan is based on a break of resistance, it is referred to as a Long Resistance Plan.

• Short DY near 93.20, target 90.27, Stop Loss @ 93.42. Details

The technical summary data is suggesting a short of DY if it tests 93.20 with a downside target of 90.27. We should have a stop loss in place at 93.42 though in case the stock begins to move against the trade. By rule, any test of resistance is a short signal. In this case, if resistance, 93.20, is being tested a short signal would exist. Because this plan is a short plan based on a test of resistance it is referred to as a Short Resistance Plan.

DY Ratings for December 06:

Term →	Near	Mid	Long
Rating	Strong	Strong	Neutral
P1	0	0	64.52
P2	90.27	93.20	75.50
P3	94.07	103.58	87.26

Support and Resistance Plot Chart for DY

Real Time Updates for Repeat Institutional Readers:

Factset: Request User/Pass

Bloomberg, Reuters, Refinitiv, Zacks, or IB users: Access Here.