OneVue - Commencing Uptrend
Updated
OneVue 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
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
Note
The share price has taken a breather since I opened the position at 69.5c. As previously mentioned, my stop loss is set at the 200EMA. I will look to add to the position with a bounce off either the 100EMA or 200EMA.Note
No major updates with this position - the share price recently closed at 66c. The 200EMA is at 60.5c and the 100EMA is at 62.3c. I am Still planning to add to the position with a bounce off the 100EMA of 200EMA.Note
Recent highs following the breakout are being tested. This is occurring on reasonable volume. It is possible we could see new highs in the coming days. Alternatively, we might have to weight longer as the ascending triangle pattern appears to be in play.Note
OVH broke through resistance at 75c on good volume yesterday. This coincided with a breakout of an ascending triangle pattern at 75c too. This most likely represents the beginning of the next leg upwards.Note
OVH made a strong move above previous resistance of 75c over the past few days. Today was a significant move on good volume which looks positive for the share price.Note
OVH encountered resistance at its all-time high of 90c today. The stock is looking overbought and I am anticipating a breather before the next assault on the 90c mark.Note
OVH released results yesterday which the market took positively. The share price then retested and successfully bounced of support at 75c today. This should confirm the next uptrend following the sharp reversal during the market panic in early February.Trade closed: stop reached
The stock price broke down below the 200EMA and closed for 2 days. Was expecting more from this trade, but 8% profit is still in the green
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