Why Darling Ingredients (DAR) Could Be Setting Up For A Big Move
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Darling Ingredients, Inc. engages in the development and production of natural ingredients from edible and inedible bio-nutrients. It operates through the following segments: Feed Ingredients, Food Ingredients, and Fuel Ingredients.
Take a look at the 1-year chart of Darling (DAR) below with the added notations:
Chart of DAR provided by TradingView
DAR has hit the $80 mark as resistance (yellow) on multiple occasions since August. After pulling lower after the most recent test of $80, the stock appears to be trying to head back up there. A break above $80 would open the door to higher prices, possibly a run to the next level of resistance at $87.5 (red).
The Tale of the Tape: DAR has an important resistance at $80. A long trade could be entered on a break through $80, with a stop placed below it. However, if you are bearish on the stock, a short trade could be made on any rallies up to the $80 area.
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