Oclaro, Inc. (OCLR) is now trading with a very clear set of technicals. Taken together they paint a very compelling picture of how investors and traders should be approaching OCLR. Traders who rely only on fundamentals do themselves a great disservice, often missing out on the better upside inherent in a stock. This is why technical charts are important.
OCLR’s most recent trading session saw the stock achieve a high of $8.03 and a low of $6.91. The high in the most recent session compares poorly to the established 52-week high of $11.30 which was set by OCLR on 02/21/17. The recent low represents a +88.47% since 05/19/16 which is a good sign for traders looking to capitalize on the stock’s upside. The current trading pattern for the stock is very telling when one looks at the overall sentiment of analysts. Presently there is a target price of $14.17 set for OCLR, a figure which is above the most recent high set by the stock. The stock also has a beta of 1.64. Since the beta is greater than 1, it can be interpreted that the stock is theoretically more volatile than the market – something traders will surely be keeping an eye on.
Many traders are now starting to take a look at the stock and they are eyeing it with a few other technical indicators in mind. Both the Relative strength indicator (RSI) and Stochastic measures have come into play for OCLR. Based on current readings for OCLR, the 14-day RSI is 36.47%. This suggests that OCLR is neutral, suggesting that the stock is relatively stable in terms of upward or upward price movement. The stochastic reading is also very revealing based on current readings. In this case, OCLR has a stochastic reading of 12.91%. This suggests OCLR is oversold at current levels. OCLR also paints a compelling picture via its 50 and 200 SMAs. OCLR, based on the current trend can be considered bullish. This sentiment has created an attitude towards the stock which can be reasonably said to be positive.
Traders can bolster their view of a stock’s upside by taking a keen look at other technicals in support of the ones explored above. OCLR’s -2.12 has created a negative sentiment when measured over the past 30 days. OCLR has outperformed the S&P 500 by 42.6. This, has concluded initially, has created higher volatility levels when compared to other stocks in the same sector. Historical volatility for OCLR is showing a reading of 59.00%. OCLR also presents with an Average True Range reading of 5.93. OCLR has demonstrated through its technical indicators, the sentiment of the markets towards its upside. These signals should be taken seriously by traders who have an interest in the stock.