Stock Chart DF

Posted by downtowntrader | 3/30/2009 09:24:00 AM View Comments

Stock Chart Analysis DF
Dean Foods Company (Public, NYSE:DF)

Dean Foods Company (NYSE:DF) recently broke under a lateral consolidation after failing to hold the 200 day moving average. It looks like it was attempting to build a larger cup and handle type base, which is still a possibility. With the markets looking like they will correct some of the recent rally, it appears likely that DF will also correct. I drew out some Fibonacci retracement levels as possible areas of support, or target areas for short sellers. Often a rally will pullback to these levels, with the 50% retrace probably the most common level. The 50% retrace area is near $16.36 for DF.

While the possibility of a cup and handle still exists, in my opinion, there is too much risk to the downside right now to take action on that thesis. Reclaiming the 200 day moving average would be a start in the right direction, and a move above $21.50 would be extremely bullish.

Good Trading,


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