We look at ASX:OSP after a rapid mid-year rise and subsequent fall-off.
An interesting stock to watch over the next week - a movement away from Support 1 is likely and even trading sideways would see the four-month downtrend broken.
- After entering the downtrend in August, ASX:OSP hit a support of $0.022 before failing to break through 0.618 fib resistance. Subsequently the previous support of $0.022 turned into resistance.
- New 'Support 1' of $0.018 was found which ASX:OSP has looked to have bounced off at the start of November.
- Four-month downtrend will be tested again next week and will dictate how the remainder of 2020's trading plays out.
- Crucially, DMI+ crossed over the ADX in early November and this still remains (although close to the 25 level which is the rule of thumb for trend significance)
- In addition, standard Stoch is showing a movement away from oversold.
- Finally, the WVF is hinting at a movement away from market bottoms.
An interesting stock to watch over the next week - a movement away from Support 1 is likely and even trading sideways would see the four-month downtrend broken.