The downgrade was only based on technical analysis, not the strong fundamentals of the company. Of course technicals are important but not as important as a fundamental downgrade.

Thomas Weisel said... "If the shares can resume its recent uptrend, we see overhead resistance around the $37-$38 price levels." This comment leaves the possibility of a quick turnaround and push back up to the higher levels.

I wouldn't be too quick to assum DWA will stay down at these lower price levels. Especially with the market moving up like it is on earnings.

Don't forget the recent Upgrade from BUY to CONVICTION BUY from Goldman Sachs! They set a price target of $45. That upgrade was worth much more than this technical downgrade based on it being from Goldman Sachs and being more fundamental.