DLTH Should I Buy

DLTH is not a good buy right now for a beginner, long-term investor with $50k–$100k who is unwilling to wait for a better entry. The stock looks short-term extended (overbought) into nearby resistance while the business is still shrinking (revenue down YoY) and losses widened materially. Without a clear catalyst and with weak forward pattern stats, the risk/reward is unfavorable at the current ~$2.5 level.

Trend/price action: The setup looks like a short-term bounce rather than a durable uptrend. MACD histogram is positive and expanding (bullish momentum), but RSI(6) is very high at ~78 (overbought/extended), which often precedes pullbacks—especially for small, volatile names. Levels: Pivot ~2.37 is the key near-term support. Price is sitting just below R1 ~2.538 (and near R2 ~2.642), meaning upside may be capped unless it breaks and holds above ~2.54–2.64. A drop back toward 2.37/2.20 (S1 ~2.20) is plausible if momentum fades. Quant/pattern note: Similar candlestick-pattern analysis implies a negative drift (-0.72% next week, -1.12% next month), reinforcing a cautious stance here.