Monday, June 24, 2013

DigitalGlobe Inc. (NYSE: DGI)

Digital Globe, 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 Globe'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.) DGI has been working its way higher since bottoming at $14 in July. Over the last (5) months the stock had been hitting $30 as resistance (blue), which was also a 52-week high resistance. The stocks formation of higher lows (red) was probably a good sign that the stock was going to finally push above that resistance, which it did at the end of May. DGI has already tested the $30 level as support once and it appears to be pulling back down to it again.
The Tale of the Tape: DGI broke out to a new 52-week high and now seems to be pulling back. A long trade could be made at $30 with a stop placed below that level. A break below $30 would negate the forecast for a continued move higher.

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