Buy Setup on trend line and minor
support. OVTI was in a powerful Stage 2
on the daily chart, as shown by the series of
higher highs (HH) and higher lows (HL). It has
sold off for three days, back to an area of
minor support from the prior consolidation.
Because of the deep retracement, one should not
be looking for a new high right away, but a
tradable bounce nevertheless. It is also
considered to be a GuerrillaTM
Bullish Setup because it was down at least two
days, and previous day’s bar is a Bearish 20/20
bar (wide range bar with little tails). It
closed at the low, on prior support. This also
happens to correspond with trend line support,
as shown on the chart.
chart courtesy of
Tip: A BS on trend line
and horizontal support, that is also a GuerrillaTM
Long Setup, is a more powerful combination
suggesting a tradable bounce once the bulls
regain control of the stock.
Buy over the high made during the first 30
minutes of trading (as the previous day's high
is too far away), with a protective stop under
the lower of the day’s low or yesterday’s low.
[NOTE: Because of the Long GuerrillaTM
Setup, the Trading Strategy is valid for two
A move to the $25.00 area.
OVTI reached a high of $28.50
after five up days. Best results were achieved
using trailing stops.