Chart of the Week – OLGC
I ran a screen for:
1.RSI(14) crossed above 70,
2.Aroon Oscillator recently crossed above 50,
3.TRIX recently turned upward,
and came up with this interesting chart of OLGC.
This is a stock that has had a tough time over the past year, but may be on the comeback trail. If you look at the attached chart, I have two blue lines drawn, which represents a channel that the stock has entered. The lower blue line is the upper limit of the most recent gap down, and the upper blue line represents a resistance point, where the stock tried twice to get over in July and August of last year. As you can see, today it tried to get over this line again, but again failed and retreated. However, it is still in a strong uptrend, and remains in the channel between the two blue lines.
I also have three green lines drawn, which might be three separate profit targets. The lower green line is another resistance point that the stock tried to get over last June, and the other two green lines represent the upper and lower limits of the primary gap down that occurred last March.
And finally, the red line I’ve drawn represents a resistance level just below $1.50, where the stock tried to get over in two previous occasions, but was unsuccessful until very recently. This can be used as a stop loss level. If the stock crosses below this level, then one can say that previous resistance did not become support, and the uptrend may be lost.
This is definitely one to watch. The stock may be held between the two blue lines for a period of time, but if it can break out of this channel and advance upward, then it has several targets to shoot for, with some very attractive payouts.
(Disclosure: I do not own this stock.)
