First I would like to ask what method did you use to determine stretch?
I don't see a dial indicator so I'll just assume you used the marks on the sprocket. It also doesn't look like they are lined up right.
That said it looks like the timing indicator is exactly on zero. Figure a slight margin of error and your still in good shape.

I don't know about the orange paint marks on the sprocket do you have any info from the previous owner? Do you know if the woodruff key is stock or if an offset one has been installed? If your not absolutely sure about this then you can't be absolutely sure about the chain stretch.

Danny

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1984 300SD Turbo Diesel 150,000 miles

OBK member #23

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