Strong support area provides a good R/R
Opendoor $OPEN has delivered better than expected results in the past 2 QE. The fundamentals are strong and this past sell-off was due to the broad market sell-off. At $13.50-$13.75 range we have a strong support area that should hold. If so the minimum rise should be the resistance area of the range-bound rectangle at around $18.50.
Entering a BUY position at the current price would provide 2.5+ R/R which is pretty good. If we can get a small dip down to $14.5 then the R/R rises to 4.44 as shown on the chart.
Other notable technicals we can see are:
- the price should retrace back to 200SMA around $18-$18.5 area
- the retracement would be less than 50% Fibo
- the price is really over-sold and a counter-trend leg to the upside is expected
Not financial advice, DYODD
Entering a BUY position at the current price would provide 2.5+ R/R which is pretty good. If we can get a small dip down to $14.5 then the R/R rises to 4.44 as shown on the chart.
Other notable technicals we can see are:
- the price should retrace back to 200SMA around $18-$18.5 area
- the retracement would be less than 50% Fibo
- the price is really over-sold and a counter-trend leg to the upside is expected
Not financial advice, DYODD