The chart of Ocular, Inc. (OCLR) shows a wild ride - a gap to the downside in November, a gap to the upside in March and now another gap down yesterday. We could try to wait for the dust to settle but what is fun in that? Let's check out the charts and indicators for some guidance.
In this daily bar chart of OCLR, below, we can see those price gaps. We can also see a small double bottom pattern with lows in November and late January/early February. A rally in February and March broke above the December high to complete the base formation. Prices were very strong in March with the slope of the 50-day moving average line turning positive and the gap above the flat 200-day line.
Volume was very heavy and the daily On-Balance-Volume (OBV) line jumped higher. The strength was short-lived and the gap lower yesterday took OCLR back below the 50-day and the 200-day averages.
The trend-following Moving Average Convergence Divergence (MACD) oscillator turned down in March to a take profits sell signal nearly three weeks ago. Interesting.
In this updated weekly bar chart of OCLR, below, we have mixed signals. Prices above the flat 40-week moving average line and then a few weeks later we have a gap back to the 40-week. The long-term pattern of the weekly OBV line is positive and the weekly MACD oscillator is in a positive position above the zero line.
In this Point and Figure chart of OCLR, below, we do not have price gaps because of the way the chart is constructed. Prices could weaken further and only a break of $6.00 would be bearish. An upside price target of $17.50 is indicated but it will need a breakout over $11.00.
Bottom line: Yesterday's gap lower will mean that prices will need to rebase. Ideally the $7.50-$7.00 area will become support and new buyers will be attracted. I am not a "buy the dip" kind of trader so when OCLR rebases I will consider approaching the long side. That $17.50 price target sounds attractive.