A few weeks ago I highlighted a potential trade opportunity in DCTH.
I said:
If I was to purchase a substantial amount of DCTH here I would hold it if the closing price sustains $5.35. I would need to sell it if it ever closed below $5.35, even by a penny or two.
On June 3rd, 2011, DCTH closed at $5.38. The next trading day, June 6th, DCTH hit a low of $4.90 and then went on to touch $5.90. That is a 20% swing in price from bottom to top. The stock ended up closing at $5.70. Lets take a look at the chart that illustrates this dramatic move in price.
There is value at $4.90 all the way to $5.50, aside from some short sellers getting blown out, there was substantial buying and selling present in that price range. The more the volume is, the more value at that price. I don’t expect DCTH to stay at this level for too much longer.
