Saturday, July 26, 2008

DR - Darvas Box trade

DR -NYSE.  Darwin Professional Underwriters Inc.  This stock has formed a Darvas Box in blue sky following a large expansion in volume and is beginning to trend.  Another example of a setup Nicolas Darvas discusses in his famous book, ‘How I Made 2 Million Dollars in the Stockmarket’.  On-Balance Volume (OBV) has been rising since the start of the year showing us that the buyers are in control of the stock.  A breakout into fresh new highs would no doubt signal an entry into DR.  Protective stops should be placed as the Darvas Method tells us, that is a tick or two under the $30.00 low.  Hold for upside on trailing stop.


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