Stock Chart Analysis OMCL

Posted by downtowntrader | 1/22/2008 09:58:00 PM | 0 comments »

Stock Chart Analysis OMCL

Omnicell, Inc. (Public, NASDAQ:OMCL)

I had a very difficult time finding charts that were in a good buying position without the huge risk of a wide stop below todays trading range. Most stocks had huge candles with long tails indicating reversals, but most are probably too risky to hold at this point. There is still a better then average chance that the markets come back to retest todays lows in the near future regardless of whether this is an important low or not. I say low, because it is highly doubtful that a "bottom" is in.

Looking at OMCL, it also had a wide range day today, but even at the lowest reaction low, it held near and above the 20 day sma. It also looks like it has cleared a triangle like trading pattern and actually cleared it over the past few very negative market days. It has been showing great relative strength which may lead to higher prices soon, especially if the markets begin to rebound. The one thing that stands out though, is that it may be a little overbought near term and therefore could pull back too, but it is worth keeping an eye on. Basically this is a strong stock in weak tape and therefore warrants consideration.

Good Trading,


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