By: Jeff Cooper
Hit and Run Morning Stock Report: January 11th, 2023
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DRQ Breakout Using Hit and Run Multiple Time Frame Analysis
DRQ struck a swing low at 21.31 on December 12th followed by a rally that tested its November 14th high near 27, putting in the right side of a Cup.
From there DRQ traced out a tight, textbook Handle of a Cup & Handle formation.
It came out on Friday.
Monday it followed through but tailed off a tad leading to a turndown of the dailies on Tuesday, November 10th leaving a TD buy setup.
This is the first turndown in the dailies after a clear-cut breakout.
DRQ reacted bullishly to the TD buy set up, carving out an outside up day Tuesday.
The indication is it is poised to extend.
All trading is contextual. Checking weekly shows a big picture inverse Head & Shoulders (bullish).
The inverse H&S was validated by a breakout over the declining red trend line 3 weeks ago.
That breakout perpetuated a turn-up in the important 3 Week Chart (3 consecutive higher weekly highs) which coincided with DRQ “coming out” of its daily Cup & Handle.
Checking my Square of 9 Calculator reveals that 180 degrees up from the December 21.31 low is 32.
Notice the declining green weekly trend line at 32.
Putting the pieces together, DRQ looks set to be magnetized to 32 over the coming week.