DigitalGlobe Inc (NYSE: DGI)

DigitalGlobe, Inc. provides commercial earth imagery products and services in the Americas and internationally. The company operates in two segments, Defense and Intelligence, and Commercial. It offers satellite imagery contents, aerial orthomosaic imagery, and elevation series of digital surface and terrain models, as well as analysis products and services to provide context and insight to imagery. The company allows its customers in Direct Access Program, to directly task and receive imagery from its satellites. It also provides a range of on-and off-line distribution options, which enable its customers to access and integrate imagery into their business operations and applications. The company’s products and services are used in defense, intelligence, and homeland security applications, as well as mapping and analysis, environmental monitoring, oil and gas exploration, and infrastructure management uses. Its principal customers include governments, civil agencies, and providers of location-based services, as well as various companies in other industry verticals, such as the financial services, energy, telecommunications, utility, forestry, mining, environmental, and agricultural industries.

To review Digital’s stock, please take a look at the 1-year chart of DGI (Digital Globe, Inc.) below with my added notations:

1-year chart of DGI (Digital Globe, Inc.)

It is clear that DGI has formed a resistance at $30 (purple), which would also be a 52-week high breakout if the stock could manage to break above it. In addition, the stock has been climbing a trendline of support (green). These two levels combined have DGI sandwiched within a common chart pattern known as an ascending triangle. At some point, the stock will eventually have to break one of those two levels.

The Tale of the Tape: DGI has an up trending support and a 52-week resistance level to watch. A long trade could be made on a breakout above the $30 resistance or on a pullback to the support, which currently sits near $27. A break below the up trending support could be an opportunity to enter a short trade.

Would you like assistance in making your TBS trades? If so, email me at Christian@yolopub.com and let’s talk about working together one on one!

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!

Christian Tharp, CMT