Stochastics aligning with extremely oversold territory. Looks to...

Stochastics aligning with extremely oversold territory. Looks to be the bottom but needs to show further strength here.



On-balance volume (OBV) is a technical indicator of momentum, using volume changes to make price predictions.

OBV shows crowd sentiment that can predict a bullish or bearish outcome.

The theory behind OBV is based on the distinction between smart money – namely, institutional investors – and less sophisticated retail investors. As mutual funds and pension funds begin to buy into an issue that retail investors are selling, volume may increase even as the price remains relatively level. Eventually, volume drives the price upward. At that point, larger investors begin to sell, and smaller investors begin buying.

Despite being plotted on a price chart and measured numerically, the actual individual quantitative value of OBV is not relevant. The indicator itself is cumulative, while the time interval remains fixed by a dedicated starting point, meaning the real number value of OBV arbitrarily depends on the start date. Instead, traders and analysts look to the nature of OBV movements over time; the slope of the OBV line carries all of the weight of analysis.

Analysts look to volume numbers on the OBV to track large, institutional investors. They treat divergences between volume and price as a synonym of the relationship between "smart money" and the disparate masses, hoping to showcase opportunities for buying against incorrect prevailing trends. For example, institutional money may drive up the price of an asset, then sell after other investors jump on the bandwagon.

Overall, looking relatively bearish but the sentiment seems to have slightly changed given the recent presentations and announcements. Think the floor is set around the 4c mark and there isn't much selling into the buy side currently so sidewards movement is expected for the coming months and any announcements leftfield will be hit with increased selling pressure until fundamentals continue to show great growth.