• Chart of the Day – Reader Request Edition: OraSure Technologies Inc. (OSUR)

    by  • November 21, 2012 2:06 pm • Charts to Watch, Tony Venosa's Chart of the Day • 0 Comments

    Today’s chart comes courtesy from a reader request for OraSure Technologies Inc. (OSUR) which develops, manufactures, markets, and sells oral fluid diagnostic products and specimen collection devices in the United States and internationally.

    Ticker:  OraSure Technologies Inc. (OSUR)

    What I Am Looking At:

    • iShares Medical Devices etf (IHI) up nearly 13 percent year-to-date, slightly outperforming the broader market
    • OSUR, down more than 15 percent year-to-date, underperforming its peers
    • $14 level appears to be multi-year resistance (blue lines on monthly chart above)
    • October breakdown from massive complex head & shoulders topping pattern (see daily chart above)
    • Recent bounce from the half-high ($7 area)
    • 61.8 percent Fibonacci retracement level (monthly chart) of the 2009-2012 upmove corresponds to the November low
    • Most recent earnings announcement (11/7) saw a below-consensus guidance for Q4 EPS
    • Facing gap resistance around the $8.50 area
    • Nearly 9 percent of the float is sold short
    • 11 days to cover
    • Analysts still showing optimism as 5 out of 7 maintain “strong buy” ratings
    • 50-day buy-to-open call/put ratio shows nearly 14 calls for every put purchased during the past 50 days, showing a great deal amount of optimism after losing nearly 50 percent from its July peak.

     

     



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    About

    Tony Venosa, CMT is a Senior Options Strategist and works on the trading desk at Schaeffer’s Investment Research. He joined Schaeffer’s in 2010. He has worked in the finance industry for over 15 years. He began his career as a trading assistant in Chicago on the floor of the Chicago Mercantile Exchange. He later moved upstairs and worked as a commodities broker on both the retail and hedging side. He left the brokerage industry to begin his trading career as a proprietary equities trader at a Chicago firm. In 2000, Tony moved backed to his hometown and continued trading his personal account. He later went on to earn his Chartered Market Technician designation. He earned a B.S. in Finance from Miami University. Tony’s main focus is short-term directional option trading.

    http://www.schaeffersresearch.com/

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