The index is still on a sideways movement, treading the line plotted by the 65 day moving average. Whatever gains made on Tuesday was taken down on the succeeding days of the week. So it’s still a power play between the bulls and the bears, with the bears slightly winning because the upward movement of the index was not sustained (i.e unable to create higher peak).
The only solace that we could find in the current condition is the fact that the index still hasn’t nose dived again like it did in the second week of August. So we might be seeing a slow decline in the index for the succeeding weeks, but at least it is not a sudden decline.
Again expect the index to move sideways ranging between the 65 day moving average (4340) and the 130 day moving average (4220).
If you are still riding ORE, now is the time to get out of the stock temporarily. ORE has had a good run up for the past 2 months. Even with the recent general decline in the market ORE has continued to move higher. But unfortunately the ride will come to a stop and it looks like this is it.
As seen in the chart, it is very evident with the RSI, MACD, and stochastics that the stock is now exhibiting bearish divergence with the stock moving higher, creating a higher peak, while all 3 indicators are creating lower peaks.
The next support for this stock in near 4.80, if support holds, then you could buy back a smaller portion just to take advantage of the possible bounce, but do not hold it for long.
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