Dolby Laboratories, Incorporated (DLB) develops and delivers products and technologies for the entertainment industry worldwide. The company offers products and services for content creators, which include encoding products and services for moviemakers, music studios, and video game designers; encoders, decoders, and processors for television producers and broadcasters; and mastering and packaging services for digital cinema business. The company was founded in 1965 and is based in San Francisco, California.

Fundamental Picture

Dolby has strong fundamentals with fine return on equity and outstanding sales growth..

Technical Outlook

The Dolby stock has recently bounced off its 50-day exponential moving average and has resumed its long-term uptrend. This continued uptrend is also being confirmed by the bullish MACD crossover.

Trading Action Plan for the Week

Stock Entry: Buy shares of Dolby (DLB) at 67.24 or better.

Option Entry: Buy the September 65 call at 5.85 or better.

Profit Target Exit: 82.

Please note that we will use this price as an initial guide but we will gradually move up our trailing stop to realize as much of the breakout as possible while protecting our profits.

Stop-loss Exit: 59.99.

As the stock starts to breakout we will move the trailing stop up to protect any accrued profits on our stock and option positions.

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Best Regards,
Jeff Neal

E-mail : Info@stockbarometer.com if you have any questions about this trade or any other questions or comments.

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Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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