Technicals are improving!
I looked over the technicals, and most are still improving.
The point and figure chart shows a bullish formation in a correction mode, or shakeout mode, with higher highs and higher lows. Volume in this correction is well below average, and with the HMO and almost all other sectors correcting, OXHP seems to be resting, consolidating, whatever. Money flow is flat; weekly stochastics still look like they want to increase.
With the financing complete, there are no doubt some sellers taking a profitable trade. Managements forthcoming discussion of business plans will likely bring forth a new round of buying, but only when sector and market strength reappears.
I expect a test of the February highs in the next few months, along with a better market environment, and am comfortable owning the ITM Nov calls.
OXHP seems to be a great hold for now, and one could add to positions down here. I really didn't expect a return to the low 17's, but it is still above the bullish support line.
Hope this helps.
Dennis Johnson |
