Forum Topics DRO DRO #Bear Case

Pinned straw:

Added a month ago

So Dro is still pushing ahead, which was contrary to my last update, however Im still seeing the setup for the decent pull back I was expecting. The signs are now even stronger, favourable to the down leg Im waiting on. I still hold my target zone below as shown where I have set an alert for me to revisit the technicals (on no positive news). 2 Items on the charts are swaying me to resist taking any position still.

1) The incline wedge it is working within. (look up incline wedge pattern for stocks)

2) The ongoing divergence on the rsi/stochastic indicator (Indicator dropping showing weakness while stock keeps rising)

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I also noted an article on Market Index written by a Dr. David Allen from Plato Investment Management on insdier buying and selling showing that last big draw down had an element of DRO management selling. That $11.9m works out to be approx 2.5% of the total approx market cap. It is good to see the ivestors eating it up though with it rising back up (says they are very bullish on the stock). However even the DRO inside sellers thought it was a little too preemptive, hence there partial sell out.

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Im also tracking AD8 & TPW waiting for there lows.

Good luck everyone

RhinoInvestor
a month ago

I can't fully understand your charts, but I'm starting to lighten the load of DRO IRL (and in Strawman now), which I think is somewhat consistent with your positioning.

I think it might still have some long term runway, but the position has become uncomfortably overweight now so will take some profits in the SMSF from an 18c entry position in mid 2022. I also think it has become a little over-hyped now so could well pull back (or go sideways for an extended period).

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