OSH has one of the longest price cyles (bust to boom and back to bust) I've come accross - nearly 20 years. Coming off a significant low in March price rose for only 11 weeks after which it rolled over into a formal downtrend - reinforcing why we need 12 higher weeks for an uptrend. Price has not yet formed a new uptrend but it did break the downtrend referred to and is making higher troughs and peaks on the weekly chart - both of which are buy signals. Price reversed of resistance at $3.83 only to retest that level and close above it yesterday and confirming a short-term target of $5.10 and the potential of a $24% gain. The length the last price cycle doesn't necessarily mean this cycle will also be drawn out - but if it is Wave 1 could go some distance. Probably a good long term hold.

Edit: A note of caution. Elliott Wave is not entirely clear in OSH' chart and there is a possibility that this recent rally from March is sub-wave 4 of Wave C - meaning price could fall to make a new low. That said, EW theory suggests that Fibonacci extensions of Wave A and Wave B suggest the March low was the bottom.

OSH 7Jan21


Robert Norman

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

Sorry, this website uses features that your browser doesn’t support. Upgrade to a newer version of Firefox, Chrome, Safari, or Edge and you’ll be all set.