Contents:
- Overview
- Hybrid 10-Step Trading Strategy Analysis
- Conclusion
Overview
DDMP REIT Inc. (DDMPR) is attempting a recovery, but the 200-day moving average (1.09) remains a strong resistance level, leading to a recent pullback. The price is currently hovering around the 20-MA (1.06), which is serving as short-term support. A successful bounce from 1.05 with a green power bar could signal a renewed bullish attempt, but failure to hold this level may lead to a decline toward 1.03 - 1.02. Traders should look for a breakout above 1.09 with volume to confirm further upside or remain cautious of potential downside risks.
DDMPR’s January 22, 2025, daily chart shows rejection at the 200-MA, with key support at 1.05 and resistance at 1.09.
Market State & Trend Context (Step 1)
DDMPR is showing early signs of a potential recovery, but the long-term trend remains bearish:
- The 200-day moving average (1.09) continues to slope downward, reinforcing the broader downtrend.
- The 20-day moving average (1.06) is acting as a short-term support.
- The price recently tested the 200-MA resistance at 1.09 but failed to break through.
Position, Location & Key Retracement Zones (Step 2)
- The price is above the 20-MA but below the 200-MA, indicating a transition phase rather than a clear trend shift.
- Resistance is at 1.09 - 1.10, aligning with the 200-MA rejection.
- Support is at 1.05 - 1.06, where the 20-MA is currently holding as dynamic support.
- A deeper retracement might lead to a retest of 1.02 - 1.03, an area of prior consolidation.
Power Bars & Retracement Strength (Step 3)
- A strong bullish move pushed the stock towards 1.09, but recent price action shows a sharp rejection.
- The current pullback lacks a green power bar, signaling weak bullish momentum.
- A strong bounce from 1.05 or lower would indicate a better entry for long positions.
Entry with Confirmation from Both Strategies (Step 4)
- Long trades should only be considered if price holds above 1.05 and shows a strong green candle with volume.
- Short trades remain viable as long as the price stays below 1.09, rejecting the 200-MA.
Tactical Stop-Loss Adjustments (Step 5)
- For longs, a stop-loss at 1.03 would protect against a breakdown.
- For shorts, stop-loss should be placed above 1.10, as a breakout beyond this level could indicate trend reversal potential.
Color Change as a Secondary Confirmation (Step 6)
- The last few trading days show a mix of red and green, signaling market indecision.
- A strong green candle above 1.06 would provide a bullish entry signal.
Profit-Taking Aligned with Retracement Targets (Step 7)
- For shorts, profit-taking should be considered around 1.03 - 1.02.
- For longs, targets should be set at 1.08 - 1.10, where strong resistance lies.
Re-Entry at Secondary Retracement Pullbacks (Step 8)
- If price bounces from 1.05 or consolidates near 1.02, it could provide a better long re-entry.
- A failed breakout above 1.09 could offer another shorting opportunity.
Tactical Position Management (Step 9)
- Long trades should be small until confirmation of strength above 1.09.
- If price rejects 1.09 again, a larger short position may be justified.
Counter-Trend Trades Only When Retracement Fails (Step 10)
- A counter-trend trade (long position) can only be justified if price holds above 1.06 and volume supports the move.
- Otherwise, bearish momentum remains intact, and traders should focus on shorting at resistance levels.
Conclusion
The January 22, 2025, daily chart of DDMPR shows early recovery attempts, but the 200-MA rejection at 1.09 keeps the stock under bearish pressure.
- If price holds above 1.06, a potential breakout attempt could develop.
- If price fails to sustain above 1.05, expect a retracement towards 1.03 - 1.02.
Traders should wait for confirmation before committing to directional trades.
Disclaimer: This post is for informational purposes only and should not be considered financial advice. Always do your own research before making any trading decisions.
Related Readings
- Micro Stock Trader: Comparing the Modified 10-Step Trading Strategy vs. Retracement Trading Strategy
- Micro Stock Trader Portfolio Tracker Page
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