OVH buy signal based on MRV1 setup on 2 Jan 24 at RM0.225
- This is actually a repeated signal, as it was previously triggered on 14 Dec 2023 at a similar price of RM0.220.
- Although the support area could be higher, I would set the stop loss to RM0.195 to avoid having a stop that’s too tight.
- The target price is RM0.270. To maintain a risk/reward ratio of 1:2, you may choose to adjust this to 1:1.5 or 1:1 based on your preference.
- The time horizon is 2-3 months, as the signal is derived from the daily chart.
- The price is still at the lower range of the historical price, and there’s good momentum play on the previous signals.
- There’s a 1-2-3 movement pattern from the series of higher highs (HH) and higher lows (HL) after the price retracement in October 2023. This is good enough for a momentum play, especially with an uptick nearing an equilibrium support area.
- The immediate resistance is at RM0.250 and the next resistance is at RM0.295.
- The support zone is at RM0.210.
**Only for discussion purposes. Not a buy / sell call**
OVH
OneVue - Commencing UptrendOneVue Holdings has begun a new uptrend. This is marked by the breakout on significant volume of the 200EMA (daily). The price settled after this break for a number of trading days. The exit is set at two days trading below the 200EMA, or one day if the move is significantly below. My entry was limited by 15% downside to the 200EMA.
This is a long term momentum-based position. There is no target price for this position - it has unlimited upside and downside limited to 15% - both based on crossing the 200EMA.
As part of my investment thesis I always consider fundamentals. The entry price for OVH is high using traditional valuation methods, therefore entry is based solely on the above analysis. The fundamentals that support this investment are:
- The company has just become cashflow positive and profitable. This means all new revenue significantly improves the bottom line.
- Management owns a significant portion of the company
- Industry tailwinds (FinTech)
- Relatively fixed cost base
- Recent growth trend is strong
- Significantly net cash
