I really dont want to make a judgment call on this one... its very 50/50... TA is bullish, but could be topping out for a short term retrace.. however I had a quick look at the Fundamentals and the debt is a worry IMO...
From the most recent balance sheet that oOh!media had liabilities of AU$221.8m falling due within a year, and liabilities of AU$948.3m due beyond that. On the other hand, it had cash of AU$125.1m and AU$42.1m worth of receivables due within a year. So its liabilities total AU$1.0b more than the combination of its cash and short-term receivables.
This deficit casts a shadow over the AU$700M+ company. Shareholders need to watch this one closely. oOh!media would likely require a major re-capitalization if it had to pay its creditors today. So caution is needed...
The Technicals however still show strength...
View attachment 2541002Rally Within Longer Term Bearish Trend
OML appears to be rallying within a longer-term bearish trend, driving its MACD above the signal line. However, shares remain below a declining 200-day moving average, signifying that the dominant trend remains lower. Comparative Relative Strength analysis shows that the stock is lagging both the S&P/ASX 200 and the Communication Services sector average.
Strong Bullish Momentum
Momentum for OML is strongly bullish. The 14-period Slow Stochastic oscillator is above 80, the level which many analysts call overbought. This means that investors have been actively purchasing shares and driving the price higher.
Low Volume
Today's volume is on track to be lighter than usual, with 4M shares having traded so far. The On Balance Volume indicator (OBV) shows that longer term accumulation has given way to near term selling pressure by traders.
Bollinger Bands Signal Volatility Squeeze
Volatility, measured using the width of the Bollinger Bands , is extremely low, resulting in a condition called the Bollinger Band Squeeze. Bollinger Band Squeezes tend to precede major price breakouts, although they do not predict which direction the new trend will take. Trend and momentum indicators can be useful during Squeeze conditions to help discern the direction of future trends.
I literally dont know enough about the fundamentals moving forward... I have spent 10-15 minutes on researching OML so please excuse the lack of FA... IMO this one is slightly risky... there is literally a 50/50 chance for this to continue the bullish momentum..it really needs to break $1.40-$1.50 to show strength..
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