OptiNose, Inc. (OPTN) is a relatively new issue. Chart readers and technical analysts do not have a lot of trading history to work with but we can make some thoughtful observations and recommendations. OptiNose is a maker of products for ear, nose and throat conditions, so let's clear our throats and dive into the charts.
(For more on OPTN, see Who Are the Trade War Victims?: Jim Cramer's 'Mad Money' Recap)
In this daily bar chart of OPTN, below, we can see a mixed picture with respect to the price action and indicators. Prices are above the rising 50-day simple moving average line but the line was successfully tested in April and earlier this month. The pace of volume was more active in October and December and then dried up until this month.
The daily On-Balance-Volume (OBV) line has an "interesting" movement - rising slightly from December to March and then declining into June. A declining OBV line is viewed as a bearish clue with heavier volume being traded on days when OPTN has closed lower. Prices rallied in April and May but the declining OBV line suggests an underlying weakness.
The trend-following Moving Average Convergence Divergence (MACD) oscillator moved above the zero line in March for a buy signal and has recently turned up again for a fresh buy signal.
In this Point and Figure chart of OPTN, below, we can see an upside price target of $28.72. A decline back under $23.25 could weaken the chart.
Bottom line: With mixed technical signals, OPTN could see a $22 to $26 trading range before it makes its next move. The Point and Figure chart only shows a price target of $28.72 so if we go with a sell stop below $22 we are looking at a 1:1 trade - risking a dollar to perhaps making a dollar. Not real attractive in my opinion.