$OSTK div dates will soon start to drive priceUnusually $OSTK bottoming process commonly coincides with periods of lower volume.
Mediciventures
$OSTK breakout from ascending fib channel? Not even overboughtPositive fundamental factors to consider:
- Insider buying s.flashalert.me
- SEC inquiry coming to an end foxbusiness.com
- Working with Oppenheimer M&A to sell retail
- Search traffic up 50% in Q3 twitter.com
- Global rank soaring higher twitter.com
- Dividend on the 23rd
- 31% Increase in traffic from Overstock.com to payment processor twitter.com
- Seeking Alpha: Overstock.com: Already 2 Months In The Black And Likely To Surprise seekingalpha.com
$OSTK falling wedge, bullish divergence, ascending fib channelIn addition to what is highlighted in the chart, the low of yesterday bounced off of secondary cloud support on the daily chart.
Positive fundamental factors to consider:
- Insider buying s.flashalert.me
- SEC inquiry coming to an end foxbusiness.com
- Working with Oppenheimer M&A to sell retail
- Search traffic up 50% in Q3 twitter.com
- Global rank soaring higher twitter.com
- Dividend on the 23rd
$OSTK extended 3rd wave could produce 200% gains as shorts coverAs much as shorts will have you believe that there is no reason for them to be concerned they are already covering and the number of shares sold short is down 17% from the highs.
Not covering here near the golden cross, 9% above the 200-day MA is very risky even from a TA perspective.
Additionally, the date of record on the new dividend is only 24 trading sessions away. A conservative estimate is that shorts not covered by the date of record may be on the hook for an additional $27,000,000.00 to cover the cost of TZero tokenized securities due to shareholders.
Even if the value of all of the Medici Ventures, patents and capital raised is taken out of the equation the shares are currently underpriced. The 2 analysts offering 12-month price forecasts for Overstock.com Inc have a median target of $44.00, with a high estimate of $48.00 and a low estimate of 40.00. The median estimate represents a +143% increase from the last price of $18.11 .
$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.
$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.
$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%
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.
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.
