OPTV
Another fuzzy C setting up. Outstanding money flow. But there is some volume resistance at 4.14 from Nov ‘04 as well as recently, so it may be prudent to wait for that area of resistance to be broken by resistance buyers. A weekly close over 4.00 will be a very bullish thing for OPTV.
But optimistic buyers relying on other non-TA supporting factors might be tempted to buy the next drop to C. 3.00 to 3.20 would be a good place to stalk for a good risk/reward setup. The logical target is price resistance of 5.34, which is around 70% profit, so applying a nice r/r of 10, one may be tempted to risk up to 7% on a long trade from the 3.00 area, which would be around $2.88 stop, which happens to be underneath some nice price support. So while 7% risk might be higher than my usual prefered risk of sub-2%, the target is a nice one should the plan work.
And note the bear plan should the C fail.
Remember; support is only support until it isn’t. And then it becomes resistance. Smart traders buy support and sell resistance. And a C is a critical area to look for bias in a chart. At the moment, the C is forming. When it is confirmed (by price making a new daily high) the C will be support, and the bias should be long.
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