As you can see in the charts, my patience has paid off. After nearly doubling in two weeks, from the $9 level to more than $17, DGLY has now come all the way back down to that $9 level.
The above three adjacent charts are daily, weekly and monthly. You can see on the daily chart that the RSI shows DGLY being very oversold, near-term. The weekly chart, in the middle, is not as encouraging. It shows the MACD just in the early stages of a bearish crossover, and the RSI is not yet oversold. This indicates -- but certainly does not guarantee -- that DGLY could fall further in price. The monthly chart, on the right, shows the MACD just in the early stages of bullishly overtaking the zero line, and it also shows with the RSI that the overbought energy from September's furious rally has now been worked off.
Of the three charts, only the weekly chart shows any reason for concern, so I believe it is prudent to go ahead and enter a small position in DGLY, then patiently wait to see if an even better entry price might present itself, for the remainder of one's desired investment in Digital Ally.
As always, do your own due diligence.
-- Written by Ben Brinneman in Charlotte, N.C.
At the time of publication, author was long DGLY.
Trader Ben Brinneman, featured on MarketWatch
, resides in Charlotte, N.C., and is the owner of C Squared Trading. Brinneman started his career trading bonds for U.S. Bancorp and was an analyst for a wealth management firm. Brinneman and his team at C Squared Trading have taught hundreds in a one-on-one mentorship setting via Skype or live in Charlotte.
You can follow some of their free trades and tips on Twitter