Some comments on TA:
1. I use a fair amount of TA when buying stocks and agree with the comment that TA is not as predictive with low-volume, low-priced stocks. Sure you can get a sense for support and resistance, trend, etc., but you are much more at the mercy of the MMs and the few buyers/sellers at any given time.
2. I agree that without meaningful news (read: contracts) the OZON stock price will continue to move around unpredictably. It could just as easily test the $1 level as revisit the $3 range on no news. The longer we wait, however, the more likely the stock price will drift lower, as more and more shareholders lose patience and sell out.
3. Based on recent trading activity, it appears OZON has support at 1 1/4. If I were to trade this stock, I would accumulate at 1 1/4 and sell at 2 1/4. I believe resistance is at 2 1/4.
4. If OZON is unable to convincingly stay above $2 in the near future, I expect OZON will revisit the low $1 level again.
5. Investors in OZON should only be reading charts when they want to add to their position. Otherwise, you are wasting your time. It is clear that on any meaningful news the stock price will explode past $3. So, buying at 1 3/8 or 1 3/4 or even 2 1/4 doesn't matter. You will still make a lot of money.
Luis |
