Just when I thought that the index is moving up beyond the current sideways channel, the index again fell within the small channel between 4400 and 4290. The recent activity only shows how volatile the market is.
As of current, the sideways channel between 4400 and 4290 still holds. There are a couple of stocks that you can play on this ranging market, but for the risk averse, it would be better to stay on the sidelines until the index is able to breach beyond the 4400 resistance line with high value turnover
DIZ had a spectacular run up with large volume even going beyond the resistance line and reaching 14.40. With that kind of volume, this may definitely go way beyond the channel that it has created since July.
As of current, the stock is very much over bought. It would be prudent to lock in profits for now, probably sell ¾ of your position. This stock definitely has the potential to go beyond 14.40, but it would eventually fall back one of these days and I would rather recommend to sell now and buy later when the stock reaches near 11.50 (50% retracement).
Do not forget to observe the volume, any increase in volume on the downward movement would be a sign to cancel the idea of a buy back near 11.50.
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