In my previous post on OSIM, I pointed out that "In the near term, stock price should continue to trend higher. But with decreasing volume, there may be a correction at hand." Refer to Will OSIM Dual Listing Plans Cause Price to Continue Rising?. Sure enough, prices rose for another three days before undergoing the anticipated correction as we can see from the chart below where I indicated when I made that statement with the blue arrow.
Currently price looks to be rolling over and forming either one of two formations - a double top or an ascending triangle.
To note, volume is still lower than compared to the previous time it reached resistance. This in no way helps bouy prices up to prevent the double top breaking down and sending prices lower from becoming a reality. Furthermore, from the MACD and Stochastics, prices may head lower in the short term. We will only know if the ill-result of the double top formation materializes should prices break below the neckline at $1.47. If so, prices are expected to drop further. However, the 50 day moving average which stands at ~$1.53 should provide some support which I expect prices to dip to judging from price behaviour.
That said, there seems to be some support at $1.62 as well as the 14dma (albeit looking weak). If this holds, we could see the formation of an ascending triangle instead. However, price movement today managed to push through this support to $1.60 before closing three cents higher to $1.63. This gives me mixed feelings at present. The next couple of days should give a clearer picture. If the ascending triangle pattern does hold, then a breakout would probably see prices head higher. This could occur as the market sentiment still remains bullish.
To note, volume is still lower than compared to the previous time it reached resistance. This in no way helps bouy prices up to prevent the double top breaking down and sending prices lower from becoming a reality. Furthermore, from the MACD and Stochastics, prices may head lower in the short term. We will only know if the ill-result of the double top formation materializes should prices break below the neckline at $1.47. If so, prices are expected to drop further. However, the 50 day moving average which stands at ~$1.53 should provide some support which I expect prices to dip to judging from price behaviour.
That said, there seems to be some support at $1.62 as well as the 14dma (albeit looking weak). If this holds, we could see the formation of an ascending triangle instead. However, price movement today managed to push through this support to $1.60 before closing three cents higher to $1.63. This gives me mixed feelings at present. The next couple of days should give a clearer picture. If the ascending triangle pattern does hold, then a breakout would probably see prices head higher. This could occur as the market sentiment still remains bullish.
Not vested,
~K
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