December 19 Chart of the Day - Dine Brands
Precision oriented price action technical analysis by far provides the best edges and most setups for traders and investors across the markets so that's what we use for the basis of our reviews
Dine Brands (DIN) operates restaurants you may be familiar with...
What you may not realize is how beaten down their share price has been and may continue to be. We'll take a deeper look from a price action technical analysis perspective.
We have featured over 325 Charts of the Day since May 2023 and teach Price Action Technical Analysis Trading for FREE to traders who join our Highly Rated Trade Room.
Monthly Chart
On the monthly chart we can see that after setting its $114.23 all time high (ATH) back in 2014 price fell dramatically and has swung up and down with little regard to previous support/resistance levels (remember this for later).
Price set a bottom back in 2020 down near $15 before roaring back up towards the $100 area before getting firmly rejected.
This type of price action can be really tough on the buy and hold investors but at the same time can be a traders haven!
Weekly Chart
On the weekly chart we can see with much more clarity the fall from ATHs, and the relentless and wild price swings both up and down.
On the way down price has consistently made lower highs and lower lows.
Trading around $30.10 earlier today price may be attempting to set another lower low.
One thing to note is that while price often ignored previous support/resistance levels it has nicely respected trend lines and potentially may get another chance to prove that again down near the $20 area.
It goes without saying though, the only guarantee in the markets is that price cycles. It cycles up and it cycles down across all time frames and all charts and rarely, if ever, moves in a straight line.
Only time will tell for sure what price will do next...
We've layered in traditional Fibonacci levels as well as support/resistance and trend to help identify potential price levels of interest and/or future price targets.
Armed with precision oriented charts like these both traders and investors can formulate their respective plans.
So what's next?
We don't make predictions...
Nobody knows for sure but using these 5 price action tools traders and investors can develop levels of interest in both directions.
- Support/Resistance
- Trend
- Fibonacci
- Supply/Demand Zones,
- Change Control Zones
ChartPros provides the exact methodology in its price action technical analysis courses to create charts like this with the most precise and accurate levels from which investors and traders can formulate their respective trade plans.
Take a look at the charts and let us know what you think. We'd like to hear from you in the comments sections.
