6/17/2018 – Universal Display Corporation (OLED) & It’s Downtrend
Universal Display Corporation (OLED) Stock Chart Review
A member request came through to look at the charts for Universal Display Corporation (OLED). The link will take you to the company website where you can learn more about their products and source of revenue.
But this article will not be about revenue. As I prefer, this article will look at a couple different charts to if there is accumulation or distribution of shares going on right now. As applicable I will then identify either the upcoming support or resistance area for its share price.
Time to dive into the charts!
20 Year Long-Term Chart Review
This first chart is a 20 year monthly candlestick chart. When analyzing a new company I typically like to start with a 20 year chart first. I always try to find the largest Bullish Impulse wave pattern that I can on the chart to see what the company's longest price uptrend was for its share price. Elliott wave analysis is one of my investing keys to success.
Why do I try to identify the largest Bullish Impulse wave pattern that I can? I want to see if the wave pattern could be part of an even larger Bullish Impulse wave pattern that is developing. Initially, that does not appear to be the case for OLED's share price. After a stock's share price drops below the top of Wave 3, the chances for
I've indented the Bullish Impulse wave pattern on the chart with trendlines and my labeling of waves 1-5. Statistically speaking, the highest percentage pullback area to correct a Bullish Impulse wave pattern is the top of Wave 1. The top of Wave 1 is at $74.39 which means that OLED's share price will most likely see a lot of support around the $75 price level. Yes, that means I think its going even lower.
The amount of selling volume during the pullback that started in February 2018 has been way above average. That tells me to look at the pullback in more detail and look for alternatives to the $75 price level as a pullback. I will do that later in the article on a 1 year daily candlestick chart for Universal Display Corporation (OLED).…...
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I review 2 widely different support areas and the signs of a reversal to watch for during OLED's current pullback. Purchasing shares at a support area is a sound strategy for the hard-earned dollars in your portfolio.
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