Technical outlook – Over the past six-week, it has been all downhill for Dicker Data Limited (DDR), after prices peaked in late September at $8.09 and have now posted an intraday low at $6.47, along with posting an inverted hammer at the session close.
The Inverted Hammer candlestick formation occurs mainly at the bottom of downtrends and can act as a warning of a potential reversal upward.
It is important to note that the Inverted pattern is a warning of potential price change, not a signal, in and of itself, to buy.
Therefore, it is assessed that in the background the bulls are quietly gathering and are in a prime position to join forces to take this share higher.
Although, let’s first see if the market can clear $6.90 before we “put all our eggs in one basket” and still leave enough room for error, (that is) if the market bulls fail to emerge.
If we do witness a $6.90 break, (it is therefore anticipated), that a bullish cry will be heard in the market which in terms should trigger a move to $7.25, reassess from there.
Company Overview – Dicker Data Limited (DDR) is an Australian wholesale distributor of computer hardware, software and related products. Its vendors include Hewlett-Packard, Cisco, Toshiba, Lenovo, Microsoft, ASUS and other major brands. DDR services approximately 5,000 resellers who in turn service multiple clients ranging from SMEs to large corporate.