December 10, 2009
Shares of DTE Energy Co (NYSE: DTE) declined 56% from early 2007 until bottoming in early 2009. Since then it has regained 62% of its losses in a strong rally.
That is where the concern comes in. DTE reached the 61.8% retracement resistance level, at $42.73, intra-day on December 9 before pulling back. This is a critical resistance level that often results in selling once reached.
DTE is also just below its 2008 bear market rally highs at $44.24 a share, another resistance level that will be a test for the current rally.
Traders should be aware that a reversal from these levels could lead to a substantial correction in coming weeks.
On the flip side, if DTE manages to close above $44.24 a share, traders can expect to see further gains and a possible test of its 2007 highs above $52 a share.
The http://www.fibtimer.com Stock Strategy does not have a position in DTE Energy.
Disclosure: The www.fibtimer.com Stock Strategy does not have a position in DTE Energy.