Digital Ally (DGLY) produces digital video imaging, audio recording and related storage products for use in law enforcement and security applications in the U.S. and internationally. This stock closed up 4.4% to $9.56 in Tuesday's trading session.
Tuesday's Range: $9.12-$9.60
52-Week Range: $3.16-$17.47
Tuesday's Volume: 38,000
Three-Month Average Volume: 76,456
From a technical perspective, DGLY spiked notably higher here right above its 200-day moving average of $8.61 with lighter-than-average volume. This move is quickly pushing shares of DGLY within range of triggering a big breakout trade. That trade will hit if DGLY manages to take out Tuesday's high of $9.60 to some more key overhead resistance at $9.64 with high volume.
Traders should now look for long-biased trades in DGLY as long as it's trending above its 200-day at $8.61or above its 50-day at $8.43 and then once it sustains a move or close above those breakout levels with volume that hits near or above 76,456 shares. If that breakout hits soon, then DGLY will set up to re-test or possibly take out its next major overhead resistance level at $10.89. Any high-volume move above that level will then give DGLY a chance to tag $12 to $13.