Universal Display Corp (OLED) has been trading lower for the past several days… but this small cap stock looks ready to bounce.
Why? Technical price support.
Using the chart below as reference, let’s take a closer look at this small cap!
Universal Display’s stock price reversal has put the stock under pressure, with shares falling over 20 percent in 7 days. It’s currently testing its 50 percent Fibonacci retracement level at a confluence of price support (the December lows & trend line support). OLED looks like a good risk/reward here for disciplined “traders” that buy in increments and use a stop to define their risk.
Here’s a summary with four reasons why the stock could bounce here:
- Double Bottom potential off December lows.
- Price is pulling back to test support trend line.
- The stock put in a bullish “Hammer” yesterday.
- The 50% Fibonacci price support is acting as support.
Note that the 61.8 Fibonacci is at 146.26.
$OLED – Is Universal Display Corp Ready To Bounce Soon?
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The author may have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
