Diamond Management & Technology Consultants (DTPI)

Company

"Diamond is a premier global management consulting firm that helps leading organizations develop and implement growth strategies, improve operations, and capitalize on technology. Mobilizing multidisciplinary teams from our highly skilled strategy, technology, and operations professionals worldwide, Diamond works collaboratively with clients, unleashing the power within their own organizations to achieve sustainable business advantage." (company website)

DTPI 3-month stock chart

Buy

Diamond has been moving up steadily since the middle of the year. It recently made a run at the $12 level, then pulled back. It is back at that level and set a new 52-week high yesterday.

  • Price momentum (PPO) — picking up steadily since earnings
  • Trend (ADX) — strengthening again now with buying pressure (+DI) well above selling pressure (-DI)
  • Money flow (CMF) — modest outflow, but abating
  • Relative strength (RSI) — strengthening gradually
  • Volume — broke above 50-day moving average with heavier than normal volume

Sell

gain Bottom line
3%

DTPI has been rising steadily for almost three weeks, and that has made me nervous. I tightened up my stop-loss activation price and then switched it to a trailing stop of only 3%. In today's volatile market, the order triggered.

The uptrend still appears intact (see sidebar), but I think DTPI is ripe for a pullback. I'm quite happy to bank very modest profits and wait to see what happens next.