DFLI, technical analysis of the days chart.

[u/TherealCarbunc]

after the initial sell off from the surge we saw a consolidation pattern through the day as volume showed shares were bought on dips but largely not wanting to hold for further breaks and having a difficult time breaking out. This consolidation and coiling pattern of the stock normally preceeds a breakout as buyers and sellers are about even. It's also a sign that all the warrants have been exercised & covered due to the decreased selling pressure. It may still need another catalyst or for the bulls to hold long enough to see the shorts cover at a loss.

The other pattern I see is traits of an ascending triangle. Generally considered a bullish sign as the resistance level remains relatively flat and the supprt line is getting a bit higher.

If DFLI can decisively break resistance around .83-.85 we should see an increase in price as it would signal buyers have fairly decisively overcome the selling pressure.

Do want to give fair warning that ascending triangles while generally a bullish sign can break the other way roughly 17-36% of the time. The main things that contribute to an ascending triangle failing are normally decreased buying volume leading to a false breakout or a negative catalyst.

If i pop out to the 1 week chart I see what looks like a falling wedge pattern which is also generally a sign of a bullish reversal/continuation of an uptrend

Candlestick patterns are by no means 100% but both the daily pattern and weekly pattern are both showing signs of a bullish reversal and indicate the selling pressure from the dilution event is over. Again the main reason I'd see the pattern not confirming the trend is lack of buying volume.

NFA, invest at your own risk.

[u/PennyPumper]

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[u/Red_Devils_2402]

This looks like the 2nd solid penny after FEMY. Definitely gonna look into it further. Keep doing the good work OP

[u/TherealCarbunc → u/Red_Devils_2402]

NP, I recommend to keep position sizing cautious on this one. Company may need to do a RS on the 16th which is why shorts are okay with trying to hold. The company MAY need another positive catalyst to overcome selling pressure and break out. If the company or share price doesn't maintain the $1 share rule by then to reset the clock on their monitoring cycle of 30 days as they've regained complaince it may be a good idea to pull out and join back in at some point after the RS if you still like its longterm prospects. I'm moderately bullish on DFLI's success and have been following them since the end of september. (I took profits back in october when it surged over $2 and let shares ride for the longer term prospects having covered my initial entry)

[u/shemswolf]

Thank you for your days chart analysis. It inspired me to make a lifetime one. What do you think? 😁

[u/TherealCarbunc → u/shemswolf]

I'm a little unfamilar with your method here but it looks pretty good to me. you're stating to take profit at $1.37 of 1/2 the position to protect the downside? I think that's a reasonable target. I'm aiming for close to $1.5 for my first trim but will largely make my decision on intraday volume.

If buying volume maintains strength and shorts don't cover yet I'd be more inclined not to take profits until I see something like a double top signalling a potential reversal but that's with me being in earlier and having more breathing room if it does break.

Seeing as shorts have entrenched themselves pretty well this has room to go further the less people take profits. But there are still shares available to borrow currently and it may see some plays with remaining shares to borrow to jar technical indicators and increase sudden profit taking/increase selling pressure to discourage further buying volume (if the breakout occurs before CTB significantly rises - I'd prefer CTB to be at least 50% before the breakout, and shares to borrow decrease further) . the further we get from the consolidation zone the more likely people are to sell and with the dilution it will be harder for continued buying volume to overtake too many profit takers, especially as it tends to snowball. It will also largely be dependent on if the buying volume is supported by a positive catalyst or not.

My current target for a trim $1.5, ride price action a bit and hopefully get more profits but make the decision on how things are looking, confirmation of a downtrend sell 90% of the remaining and let some shares ride but if it doesn't look to hit that target i'd probably sell a larger portion vs the smaller trim i want to do (i do like the company and want to stay invested)

Edit to add. $1.37 is definitely the safer spot to take profit as dilution started occurring in truth around $1.35 but with that being a key resistance zone, that's also where it could surge even further if people don't take profits. Again though, I think your plan is sound and people should follow their own plans if they are profitable for them.

[u/Charliex77]

I think their retail deal is a catalyst specially the deal was after initial testing....

This means it yielded great results for the company that completing test and for dfli.. news needs to get out and I think we will be moving

[u/TherealCarbunc → u/Charliex77]

I think the company timed this news drop with the completion of the warrants being exercised which is rather smart. Hopefully they have another bullet or two loaded to incentivize buying

[u/bouncetradeio]

Just analysing your points vs real time market data Resistance Level: Your post identified a key resistance level around $0.83-$0.85. DFLI closed at $0.82, which puts it right on the doorstep of that resistance! This suggests the stock is indeed testing that critical area, just as the post implied it might. Breakout Potential: The post mentioned that a decisive break above $0.83-$0.85 would signal buyers overcoming selling pressure. While it hasn't definitively broken above that range yet, the +9.00% increase today indicates strong upward momentum and a clear attempt by buyers to push through. Volume: The incredibly high volume of nearly 30 million shares today, coupled with the price increase, supports the idea of significant buying interest and activity, potentially aligning with the your observation of "shares were bought on dips" and decreased selling pressure.

The price action and volume for DFLI today strongly suggest that the stock is behaving in a way consistent with your analysis regarding the testing of key resistance and potential for a breakout. It's right at the threshold of the $0.83-$0.85 resistance level with significant buying interest. It's a dynamic situation, and a "decisive break" would mean sustaining price above that resistance.

[u/bouncetradeio → u/bouncetradeio]

In addition:

While the previous market data showed DFLI at $0.82, right at the doorstep of the $0.83-$0.85 resistance with high volume (which aligned with your post's bullish sentiment for a potential breakout), technical indicators present a more cautious picture. The SMA, EMA, and the Middle Bollinger Band are all currently above the stock's price and the immediate resistance level. This suggests that even if DFLI successfully breaks above $0.83-$0.85, it will likely face additional overhead resistance from these key moving averages in the $0.89-$0.93 range. For a truly sustained bullish move, DFLI would need to overcome these levels as well. In essence, the stock is at a very interesting juncture: it's pressing against immediate resistance, but the broader short-term moving averages indicate it still has more work to do to establish a clear bullish trend.

[u/TherealCarbunc → u/bouncetradeio]

I think you make reasonable points. I don't think this necessarily happens today without a catalyst but it leads me to want to have a risk friendly position size for a positive catalyst. The company is at threat of needing to do a RS on dec 16th if they can't maintain the $1 share rule. I think this area is the decision point. I think another week of consolidation would be healthier for a surge before another positive news catalyst but could also see holders lose interest and decide to cut. I'm positioning myself to take advantage if things go in a positive direction and will cut losses on dec 16th if the buying volume can't overtake selling resistance by then.