NEW BEARISH Plays
DuPont Fabros Tech. - DFT - close: 23.66 change: -0.59
Stop Loss: 24.15
Current Gain/Loss: unopened
Entry on January -- at $--.--
Listed on January 24, 2012
Time Frame: exit PRIOR to earnings on Feb. 6th
Average Daily Volume = 753 thousand
New Positions: Yes, see below
Why We Like It:
DFT is a real estate investment trust (REIT) that focuses on large-scale data center facilities. It looks like the big oversold bounce that began last November has finally failed at resistance near $25.00 and its simple 200-dma. The stock is rolling over into a new bearish trend of lower highs.
There is potential support near $23.50 and its 50-dma. That's why I am suggesting a trigger to open small bearish positions at $23.40. If triggered our target is $21.00. If you are willing to hold over the earnings report you could aim lower. I am suggesting small positions because there is already a lot of bearish investors in the stock. The most recent data listed short interest at 22% of the 62.2 million share float.
FYI: The Point & Figure chart for DFT is bearish with a $10.00 target.
Trigger @ 23.40 *Small Positions*
Suggested Position: short DFT stock @ (trigger)