I see three distinct buy points on this three year chart.
1. April '05, $3- The 10 WMA crosses the 50 WMA to the downside (oversold indicator), the MACD starts its bottoming out trend, and it hits the trend line forming all the bottoms
2. July '06, $5- The 10 WMA crosses the 50 WMA to the downside again, the MACD starts its bottoming out trend again, and it hits the trend line forming all the bottoms
3. Nov '07, $8- The 10 WMA crosses the 50 WMA, the MACD has bottomed, and it hit that trend line
I am very short term bullish on this market (until early '08). So this trade will be made with special care (very tight stops). If it does break it will go to $13 before the market tops (most likely corresponding with the overall market turn). This will form a double top for ONNN and most likely some selling and consolidation during the Bear.
We will see. Good luck.
$9.02 (12/11/07)
