HG,
I'm probably rapidly losing any popularity I may have enjoyed with you, but I think Greg is right about ONXX. And I know that Reid has a different spin, but I see ONXX in a similar vein to DNA. The first and foremost fact to note is that ONXX is in a downtrend:
askresearch.com
ONXX is trading below all its major moving averages, and these moving averages are downsloping. Furthermore, there has been a series of 5 or 6 lower highs since the stock exploded to a 52 week high in August, all accompanied by lower lows. That defines a downtrend, in my book.
I think it prudent to take long positions in uptrending stocks, and short positions in downtrending stocks, because of the law of inertia: a trend will continue in the same direction at the same rate of speed unless and until some opposing force changes that direction, whereupon a new trend will begin, and not until. There is minimal evidence that this has occurred in the case of ONXX, and in fact the only evidence is that on Friday it closed above the previous peak of 14, on low volume.
Personally, I would like to see a series of these, with higher highs and higher lows, and with increasing volume during buying periods (i.e., upward price movement), and decreasing volume during selling periods (i.e., corrections) indicating increasing buying pressure and decreasing selling pressure. It's just too soon to say whether or not this will occur in the case of ONXX.
I'd also agree with Greg that the real test of resistance will likely come soon, but it will be at the level of the major moving averages, i.e., around 17. If that test is successful, then ONXX is potentially a horse of another color.
JMVHO, as always...............
WS |
