OVTI has three levels of support along its rising trendline on the weekly view. First we have $16.55 which was hit last week, followed by $15.55 and $15.00, the latter two of which mark the open and close of bullish gap support dating back to November 18th, 2005. OVTI is trading below all of its MAs, however, it will likely come into a technical bounce in the near term as it approaches its long-term trendline. Failure to hold the trendline could signal a double top breakdown.
Notwithstanding the pure technical aspects of the chart, I am reading that one of the co-founders and senior sales executive is leaving the comapny to persue other interests. This type of news is normally very negative for a stock's price, but in this case, it may already be priced in. I, personally don't recommend going long before a clear reversal pattern presents itself.
4 comments:
Thanks, Jamie. OVTI got an analyst price reduction estimate today. The MM's are really hammering this thing. Not sure what to make of it.
It started to look like OVTI wanted to do something heading into the close. It managed to close the morning gap and immediately retreated. I guess it will be one day at a time unless it gaps up on the open.
Wasn't able to watch it yesterday. I bought a bunch of NVDA in the morning on Tuesday and got really sick and spent most of the day sleeping. When I woke up, I was greeted with a pleasant surprise on my NVDA trade. I sold my NVDA daytrade at 28.48 (a bit early - bought it at 27.59) and still hold a few shares now. But, I managed to make back the money I lost on that NVDA afternoon selloff on Monday.
Heh, I'd be better off just sticking with NVDA.
NVDA is good. I like the way it closed yesterday and I'm looking for continuation again today. CHS also looks like it will pop soon.
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