Thursday, October 22, 2015

Dycom Industries, Inc. (NYSE: DY)

Dycom Industries, Inc. provides specialty contracting services in the United States and Canada. The company offers a range of specialty contracting services, such as engineering, construction, maintenance, and installation services comprising placement and splicing of fiber, copper, and coaxial cables to telecommunications providers. It also provides underground facility locating services, including locating telephone, cable television, power, water, sewer, and gas lines to various utilities, which comprise telecommunications providers. In addition, the company offers tower construction, lines and antenna installation, and foundation and equipment pad construction services for wireless carriers, as well as equipment installation and material fabrication, and site testing services; and installs and maintains customer premise equipment, such as digital video recorders, set top boxes, and modems for cable television system operators.
Take a look at the 1-year chart of Dycom (NYSE: DY) below with my added notations:
DY ascending
DY has hit resistance at $80 (red) multiple times over the past couple of months. In addition, the stock has been climbing a trend line of support (green) since the beginning of September. Eventually, the stock will have to break either the $80 resistance, which would be a 52-week high, or the trendline support.

The Tale of the Tape: DY is winding up between two key levels. A long trade could be made at the trendline support or on a break above $80. A break below trendline would be an opportunity to enter a short trade.

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