| Hi Connor: Sorry I couldn't respond sooner, I had computer problems yesterday afternoon. Looking at the OPWV weekly chart I see a stock likely in a bottoming formation. The daily chart shows the stock in a 6-day consolidation pattern, (a pennant) after the prior move up with diminishing volume as the consolidation continues. There are a couple of ways you might want to trade OPWV: (1) establish an initial position within the pennant, then add to it if the stock moves thru 2.33 convincingly, i.e. with expanding volume. Or, (2) You can wait for 2.33 to be taken out. Ideally you want to see a CLOSE above 2.33. Of the two, when I see a chart pattern that I like I prefer the first option..taking an initial position, then adding, averaging UP, if the stock moves. Sure, I pay more for the second position, but I have the comfort that my initial analysis was correct. This is simply MY "style." You should do what is comfortable for you. And of course, if you do take a position and the stock does move up you'll want to be as aggressive and careful in your planning to SELL the stock as you were when buying. You swap your capital for shares, then swap your shares for capital...hopefully more capital than you began with...Lee |
