$OSTK touching down on 200-day MA. Golden cross in progressThe stock overcorrected due to the communication style of the eccentric CEO Patrick Byrne. The nature of what was communicated concerned shareholders but should have no bearing on the performance of the company. Search traffic is up meantime and the recent earnings conference call was positive. I see this as an overreaction on the part of many shareholders combined with a crash in the market and aggressive short-selling.
Tzero
$OSTK bull flag ready to break higherAs mentioned in the chart linked below $OSTK has a lot of momentum to the upside and yesterday's earnings call just reinforced this right as it breaks through weekly cloud resistance. Typically this indicates that there will be a continuation to the upside. I expect to see the price break 30.15 over the next few weeks and don't expect there to be much resistance beyond that until around $39.50 .
On this 15 min chart the bull flag/coil seems to be coming to a head and ready to break higher.
$OSTK entering weekly cloud E2E may take it to $30.15 even $39.5$OSTK has a lot of momentum to the upside and yesterday's earnings call just reinforced this right as it breaks through weekly cloud resistance. Typically this indicates that there will be a continuation to the upside. I expect to see the price break 30.15 over the next few weeks and don't expect there to be much resistance beyond that until around $39.50 .
Weekly RSI is also looking bullish, well above 50 and has plenty of room to run.
Overstock $OSTK May Be The Next Hyper-Shorted Stock to Blast-OffDISCLAIMER: I am not an Overstock bull. I don't believe in the future of Overstock.com or tZero, however this is a potential trade setup based on market conditions
1) On Friday, Dillards had an outsided 20% run on no news, but suspected that it was a short squeeze given the stock's 45% short float
2) Monday (yesterday) Lannett $LCI had also a large outsized run (up 40%) on no news but traders suspecting the 74% short float as the cause
3) Now speculation is which is the NEXT high-short-float stock to go. I would put $OSTK at the top of that list, with other candidates as $HIIQ, $HEAR, $PETS
Make sure you visit behindthebid.com for everything you need for your premarket at a glance and other trading ideas.
$OSTK higher high on higher volume E2E would would be $16 #tZEROThe RSI is showing there is a lot of room to run. The next target is $16. Support is at $12.
$OSTK up over 13% since Mex tariff lows. Bullish RSI divergence.A higher low and a higher high would confirm that the bottom is in.
Nasdaq just made a higher daily high and the S&P 500 is back above the 200MA.
$OSTK failing to make new low after 8 days of lower $NDX #tZEROPatrick Byrne's stock sale to cover personal obligations induced capitulation in the stock price. Subsequent insider stock purchases have made it clear that this was not a sale induced by anything other than debt obligations.
As seen in the chart, mean reversion is overdue and probably being held back by a continued downtrend in the entire market. With the S&P 500 touching down on the 200-day MA yesterday a bounce in the market could cause OSTK to rebound much more (in percentage terms.)
The Kijun is a measurement of mean price over time, the stock price of OSTK usually only strays this far from the mean at the bottom of capitulation. A rebound could mean a 33% to 50% bounce from the lows. It is currently just above the lows after many days new market lows.
What $OSTK capitulation looks like, followed by 33% bounceOSTK has seen capitulation many times over the past 15 years. The small float makes it an easy target for mid-tier short sellers who can help it maintain a downtrend relatively easily compared to higher float stocks.
These long downtrends usually end in capitulation, well below the estimated valuation of the company. It is common for there to be a shallow (in dollar terms) Doji candle on either the four hour or the daily chart at the bottom. The bottom occurs below the Bollinger band displayed above.
At $9.30 OSTK will have dropped 60% from the March highs.
At $9 OSTK will have dropped 90% from the highs.
The typical bounce from the bottom of capitulation seen over the following 2 to 3 weeks is a gain of 33%
$OSTK Bullish divergence. Bears have done their worst. #tZEROConfirmation will come as the RSI makes it above 50 on multiple timeframes. At the moment it looks like a bottom with bullish RSI divergence.
End of profit taking in #Ravencoin $RVN bounced off 2018 highThe Parabola seen here is a common and fairly reliable bottoming pattern. Bouncing off the high of the previous price surge is also a common and reliable bottoming pattern as resistance becomes support. It is bullish when you see that buyers and sellers are coming into balance above support.
$OSTK #Overstock momentum reversal, multiple time frames #tZERO...uptrend on the daily chart is confirmed above $17.50
What happens if $OSTK runs out of panic sellers above support?Mean reversion takes it back to the cloud.
#Overstock $OSTK looks like a stop hunting expeditionThe activity today is reminiscent of some of the stop hunting you see in crypto markets.
Keep buying #Overstock $OSTK cloud support It looks like this could be the bottom of the ABC correction wave which started at $23.40.
The Tenkan and Kijun cross, the could flip as well as the demonstrated cloud support are all bullish indications.
A close below $16.70 could spell trouble for the uptrend, however.
$OSTK $100MM Makara, GSR investment due diligence processingIt is interesting to me that the price dipped at all. It looks like many traders are confused about the meaning of what an MOU is. Donald Trump recently was confused about it when the term was being used for the document spelling out the trade agreement with China.
www.stockme.info
Regardless of that, it looks like the wider ABC corrective wave is now complete and found support on the cloud a second time at $17.25.
The chart above shows what the next impulse wave may look like while folks digest the impact of a $100 million investment in Overstock subsidiaries tZERO and Medici Ventures leading up to earnings.
