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Sunday, December 12, 2021

This hot stock has just collapsed!

Omega Diagnostics Plc stock (LSE:ODX) collapsed towards the end of November 2021, following the gradual, protracted bearish movement of this year. Following the collapse (a big dip) there is a short term rally. Is this rally anything to take serious?


The ADX period 14 is close to the level 20, meaning that the momentum in the market is not very high right now. The DM+ has managed to remain above the DM-, which means bulls still wield a considerable amount of influence.

 


MACD default parameters has its signals lines below the zero line; whereas the histogram just crossed above the zero line. There are mixed signals in the market, and it is better to wait until there is a clear signal.

 

In case the MACD histogram moves below the zero line again, there would be a Bearish Confirmation Pattern in the market, in conjunction with what ADX is doing now.

 

The probability of ODX going downwards is higher than its probability of going upwards, so there may be further downward movement from here.

 

 

Market Analyst, Trading Signals Provider and Coach

 

Teach Yourself Technical Analysis: https://www.advfnbooks.com/books/techanalysis/index.html

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