OZL's stready climb higher for the past 2 years was broken by the recent correction. Price fell back to the lower boundary of a price channel that has also held for 2 years. While price has closed for 2 weeks below a valid weekly uptrend to make a sell signal, last week saw price rise so hopefully the channel will provide support and prices will continue to recover. Price made a resistance break suggesting a target of $33.50 just before the correction, and I would hope that target will be achieved if price can recover to close above resistance at $26.80

OZL 11Feb22

15 October 2021

OZL fell back solidly from May to August this year to find support from the lower boundary of the price channel on the chart. It then bounced and fell back to test that support. Theory says it should now rise back to the upper boundary over time. Assuming the momentum of the this rise is consistent with the long steady rise from March 2020 then that suggests a peak of approximately $40 around May 2022 (but charting is a bit rubbery when it comes to timing). In the short term price has put its head above resistance to make a higher peak that suggests a short-term target of $28.15 For those into Elliott Wave, the recent peak in price was probably the top of Wave 3 (confirmed by a Fibonacci 261.8% extension of Wave 1. Assuming the recent low is the end of a short Wave 4 then the new rally would be Wave 5 which theory predicts will go above the previous high of $27.

OZL 15Oct21

11 December 2020

With OZL my suspicion is that price could continue to fall away, given it is at the upper boundary of the shaded price channel (but not all new traders might see this). On the daily chart Friday’s candle isn’t positive as it shows that while prices recovered from their daily lows, it closed in the lower half of the candle’s range. If you look at the last time price rose to the channel boundary on 27 July it fell back a similar amount and then tracked sideways before spiking down to the lower boundary. It could do something similar this time because when prices have prolonged rises (or falls) they often track sideways and consolidate before moving up (or down) again.

OZL 11Dec2020

13 November 2020

OZL has risen strongly since breaking above a downtrend line in May this year. It has confirmed a new uptrend and price is above an uptrend line making higher highs and higher lows.  Potentially a strong long term trade candidate using trendline trading techniques.

OZL 13Nov2020


Robert Norman

Phone: 0428 346 951
Email: robert@sharecharting.com.au

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