DAQO New Energy corp STOCKHello ladies and gentleman,according my analysis To DAQO New Energy corp STOCK.there is agreat probability long to 29usd .
Daqo
Special analysis - DQA bit ago, a good friend asked me about DQ. I was not familiar with this (new) energy company, but was just looking at pure technicals. Had a heads up that if a support level was broken, there would be further downside. Needless to point out. It happened, worse that I had expected.
Now that December is over, looking at the monthly chart bodes very badly for DQ. It can get DQ-ed in many aspects. Here is what I see…
1. Bearish Monthly Marubozu candlestick just speaks volumes. It closed at a multi year low on a very solid bearish candlestick - the marubozu.
2. The topping pattern of lower highs and lower lows put a critical support at 32.20. Once broken, it is possibly to drop swiftly to 10-12.
3. The Monthly MACD crossed down and continues to trend down. By the time the Signal line crosses down below zero (into bearish territory) prices should have broken below the critical support.
4. Similarly, VolDiv indicator shows no accumulation.
Given the set above, the coming month(s) will really test 32.20 critical support. I do not these odds, and already appears ominous that something not very good is about to take place.
This is what I see based on what I know…
Heads up into 2023.
This is dedicated insight to my good friend :)
Happy New Year!
6/20/22 DQDAQO New Energy Corp. ( NYSE:DQ )
Sector: Process Industries (Chemicals: Specialty)
Market Capitalization: $4.296B
Current Price: $58.44
Breakout price: $59.80
Buy Zone (Top/Bottom Range): $55.00-$35.85
Price Target: $79.60-$82.60 (1st), $129.00-$132.80 (2nd)
Estimated Duration to Target: 210-218d (1st), 452-476d (2nd)
Contract of Interest: $DQ 1/20/23 75c, $DQ 1/20/23 95c
Trade price as of publish date: $7.20/contract, $3.70/contract
DQ correction for short term profit taking? I've been long on DQ since 140 and I feel like there's a strong chance of a short term price correction to resistance levels of around 200 in the next couple days. Momentum has been ridiculous, fueled mostly by hype, since their earnings are really nothing too special / worthy of their PE. I'm seeing strong bearish divergence on the daily RSI on today's high (see chart). Also, MACD is crossing below the signal on the lower timeframes (4h). I can see myself closing my position, and buying any dip that comes up. What worries me more in terms of medium-term prospects is their consistency in beating EPS estimates, coupled with the boatload of hype investors .Benjamin Graham points out how companies that have a record of beating EPS estimates get their prices dragged through the mud as soon as they falter in meeting those estimates, regardless of any change in intrinsic value. I'm not going to try to predict anything about their Q3, but if they can't keep up their record of beating EPS estimates, this quarter or in the next ones, you can probably expect a sharp pullback. Long term investors shouldn't be too concerned, and maybe buy the (potential) dip if they feel the intrinsic value is still there.
I don't want to seem too pessimistic about DQ, but analysts are getting super bullish on their estimates, raising Q4 EPS estimates by 50% in the last three months. Again, I think DQ is a great company, but I'm not sure these estimates are realistic.
