Long
$OSTK aVWAP pullback trade setup
OSTK has broken out of a falling wedge and has found support at aVWAP from Aug 2020 peak. The test of the aVWAP from above created a long green hammer candle which included a 6% intraday rally. From the current closing price, a stop loss below that long wick candle (whether you use a hard stop or mental stop) would be risking about 6-7%. Seeing how OSTK tends to have steep, (*)decisive uptrends, a 7% risk seems very favorable for a stock I believe is just beginning another big move up. OSTK has been moving sideways throughout all the crypto activity so I'd bet it's ready to get involved in the rally. The Aug 2020 peak is $128, I think it's reasonable for a stock in the crypto realm to make a new 52 Wk high.
(*)Interesting to note, in the 22 week rally from the March/Covid low up to the Aug 2020 peak: OSTK only put in 4 red candles, of those 4, only 2 actually closed the week below the prior weeks close (the other 2 closed below the current week's open, but higher than the previous week's close).
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.