Hi Fellini,The inverted hammer you refer to is at the low end of...

Hi Fellini,

The inverted hammer you refer to is at the low end of the current trend and usually interpreted as a trend reversal signal. (OXR is currently in an intermediate term down trend.)

Here's what Stock Charts says:

"The Inverted Hammer looks exactly like a Shooting Star, but forms after a decline or downtrend. Inverted Hammers represent a potential trend reversal or support levels. After a decline, the long upper shadow indicates buying pressure during the session. However, the bulls were not able to sustain this buying pressure and prices closed well off of their highs to create the long upper shadow. Because of this failure, bullish confirmation is required before action. An Inverted Hammer followed by a gap up or long white candlestick with heavy volume could act as bullish confirmation."

The high in November was around 4.30. The current low is around 3.10. So we've been on a steady slide for about six months.

So the inverted hammer on the monthly chart suggests we could see an upward trend develop rather than a continuation of the downward trend.

ABN-AMRO came out with a "buy" recommendation on the stock. I'd like to see some positive indication with a break of down trend lines and some positive developments on indicators before taking a position or adding to an already existing position.

At this stage I'd be more likely to be guided by the weekly and daily charts.

The monthly chart is good for seeing very long term trends. OXR is still above its very long term up trend line from 2005. If that breaks, it may be in serious trouble.

Cheers
Red