InvestedCentral
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DD is a $33.4 billion basic materials company - and a component of the Dow Jones Industrial Average - that operates as a science and technology company worldwide. After topping in late April with a bearish engulfing candlestick, DD dropped nearly 20% of its market cap in about two weeks. DD then saw a quick climb and then another steep drop before climbing again recently. Monday's reversing bearish engulfing candlestick at the 50 day SMA suggests we may have seen a near-term top. We'd consider keeping a closing stop at $38.00 while looking for a short-term pullback to the $35.00-$35.50 level. During the recent weakness, the RSI has increased to the 50-60 area just before significant declines. With RSI now at 52, we like the risk/reward on this potential short candidate.
