Stock Chart DV

Posted by downtowntrader | 4/20/2009 10:47:00 PM View Comments

Stock Chart Analysis DV

DeVry Inc.(Public, NYSE:DV)

The education sector may be ripe for a short sale opportunity soon. They have been hit hard recently, after being market leaders for several months. One stock that has been weak since reporting earnings back in January has been Devry, Inc. (NYSE:DV). It gapped lower on the heels of the report and that gap held as resistance a few days later. It then broke down from a channel it was trading in and swiftly dropped to a longer term support area near $41. This area has held as the bottom of a 16 month long trading range. While DV bounced sharply from this area, it promptly ran into resistance at the $50 level a couple of weeks later. This coincides with the lower end of it prior trading channel, and could end up marking a lower pivot high. DV then rolled over to the long term support line and is now in the process of another bounce attempt. While there is a chance that DV will hold this level, there is a very strong chance that DV will revisit this area and possibly break under this long term base. With DV currently testing the 20 day sma, it's possible that this area will serve as additional resistance and possibly offer a good entry for a short sale. Any move above $50 would negate the near term bearish outlook.

Good Trading,


**UPDATE** Keep in mind that DV reports on 4/23/2009 after market close

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