Opko Health Has 3 Very Attractive Charts
Nov 17, 2016 16:31:15 GMT
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onefreetrajectory, tomsylver, and 3 more like this
Post by stcks on Nov 17, 2016 16:31:15 GMT
Opko Health Has 3 Very Attractive Charts
realmoney.thestreet.com/articles/11/17/2016/opko-health-has-3-very-attractive-charts
In the past several months I have written about a number of companies whose stock charts and/or indicators were in tailspins. This morning I am actually happy to tell you about a great-looking base pattern with an attractive upside target on Opko Health (OPK) . Let's take a look.
Here is our starting point, the good old daily bar chart of OPK, below. After a low in January/February of this year OPK rallied to a March high. From late March until now the chart moves sideways. Prices cross above and below the flat 50-day and 200-day moving averages.
If you took all the buy and sell signals over the past seven months you probably lost money. That is what happens when you use a trend-following tool in a sideways market. Move your eyes to the right side of the chart to the price action this month. Notice how the slope of these two averages has turned positive? Also, experienced chart readers will notice that we are probably seeing a bullish pennant or bullish flag pattern in real time.
Next, I want you to look at the movement of the On-Balance-Volume (OBV) line. Despite the sideways price action this year the OBV line has been trending higher, with the September high besting the March high. Someone has been accumulating shares of OPK for months and this is bullish.
In the bottom panel is the Moving Average Convergence Divergence (MACD) oscillator and it shows a cover short buy signal at the end of October and is now close to moving above the zero line for an outright go long signal.
This three-year weekly chart of OPK, below, continues the bullish story seen on the daily chart. OPK just moved above the now rising 40-week moving average line -- a plus. Look at the weekly OBV line which has been rising since late 2015. The weekly MACD oscillator is very close to moving above the zero line for a buy signal.
There is some minor chart resistance in the $11-$12 area but I do not anticipate it will be much of an obstacle for OPK.
In this Point and Figure chart, below, we can see all the intraday swings not shown in our other charts. Notice how OPK has made higher lows on this chart -- first at $7 and then $8 and then $9. Prices look close to an upside breakout and the width of this pattern gives us an upside price target of $19.
Bottom line: Three very attractive charts. OPK -- you can buy it here or if you wait you can buy it higher.
realmoney.thestreet.com/articles/11/17/2016/opko-health-has-3-very-attractive-charts
In the past several months I have written about a number of companies whose stock charts and/or indicators were in tailspins. This morning I am actually happy to tell you about a great-looking base pattern with an attractive upside target on Opko Health (OPK) . Let's take a look.
Here is our starting point, the good old daily bar chart of OPK, below. After a low in January/February of this year OPK rallied to a March high. From late March until now the chart moves sideways. Prices cross above and below the flat 50-day and 200-day moving averages.
If you took all the buy and sell signals over the past seven months you probably lost money. That is what happens when you use a trend-following tool in a sideways market. Move your eyes to the right side of the chart to the price action this month. Notice how the slope of these two averages has turned positive? Also, experienced chart readers will notice that we are probably seeing a bullish pennant or bullish flag pattern in real time.
Next, I want you to look at the movement of the On-Balance-Volume (OBV) line. Despite the sideways price action this year the OBV line has been trending higher, with the September high besting the March high. Someone has been accumulating shares of OPK for months and this is bullish.
In the bottom panel is the Moving Average Convergence Divergence (MACD) oscillator and it shows a cover short buy signal at the end of October and is now close to moving above the zero line for an outright go long signal.
This three-year weekly chart of OPK, below, continues the bullish story seen on the daily chart. OPK just moved above the now rising 40-week moving average line -- a plus. Look at the weekly OBV line which has been rising since late 2015. The weekly MACD oscillator is very close to moving above the zero line for a buy signal.
There is some minor chart resistance in the $11-$12 area but I do not anticipate it will be much of an obstacle for OPK.
In this Point and Figure chart, below, we can see all the intraday swings not shown in our other charts. Notice how OPK has made higher lows on this chart -- first at $7 and then $8 and then $9. Prices look close to an upside breakout and the width of this pattern gives us an upside price target of $19.
Bottom line: Three very attractive charts. OPK -- you can buy it here or if you wait you can buy it higher.