DEN NETWORK: A RELOOK INTO THE STOCK

Here’s the detailed Technical Analysis of DEN Networks

Let’s look at the Weekly Chart

As you can see in the chart above, DEN Networks broke out above 110 way back in July 2012. Post breakout, it rallied and then pulled back to 110 only to rally higher. The rally gathered momentum and stock moved from 110 to 240 in less than 6 months. The stock stalled at 240: weekly resistance level and then sold off from 240 to current levels of 138.
The Big Question: Is the Bull Market over?
The pullback from 240 to now levels of 138 appears very substantial and does raise serious questions on the technical health of the stock. Let us assess from Fibonacci perspective. 
Fibonacci Retracements are ratios used to identify potential reversal levels. The most popular Fibonacci Retracements are 50%, 61.8% and 38.2%. 

As you can see in the chart above, stock currently seems to have pulled back to 50% Fibo levels which appears ideal support levels. But there seems to be no buying appearing in the stock. Below this, the stock can slip to 61.8% retracement levels which coincides with near breakout levels of 116.
What does this mean?
DEN Networks is in BULL MARKET but has lost momentum. The stock is right now at important Fibo support level and if it finds support here: this can be attractive level to buy the stock but with tight stop loss of 5% from current levels of 138. If stock breaks current levels, then it can decline to 110-116 levels. Even if stock finds support here, one has to exhibit tons of patience. The broader assumption is that stock has much higher levels to climb in future and hence this level can be attractive entry point. But if it does not work out, one should be prepared to exit. The stock will become TOTAL AVOID below 110-112 levels.
This is not a momentum stock. One should invest only if one is comfortable with the stock and has more knowledge about the company and is comfortable with the space and stock. The analysis is for readers who are interested in DEN Networks stock.