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Shout-out to @LWinthorpe for bringing this stock to my attention.
$DD is a beautiful example of a breakdown in a stock that has been trading sideways for the last 2 months. I have drawn on the chart above the optimal path this stock could take for us to get a nice short out of it.
All we are looking for is $DD to fall below the support line on decent volume (so that it isn’t a false breakout) and then retrace its steps back up to the bottom of the support line. As $DD moves back towards the support line, we want volume to fall off, and then when it gets close, we want to see a high volume down day to confirm the weakness. That high volume down day is our signal to open a short position.
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