One of the stocks that I have monitoring today is $DRI with a focus on how it trades relative to its 200 Simple Moving Average.

What you will notice however is the congestion created by:

• 8d EMA
• 20d SMA
• 50d SMA
• 10d VWAP
• 100d SMA

One big collision. So how do you make sense of it all? Here is the chart:

With a Hammer (Trend Reversal signal) forming for today, it appears that the Bull camp has stepped in to buy this on the pullback today. For a clean entry, look for one of the above moving averages to make a clear move – break out of the congestion.

Otherwise, this is simply a basic channel play (short the top rail, dip buy the bottom rail).