Ocwen Financial Corp (NYSE: OCN)

Ocwen Financial Corporation, through its subsidiaries, engages in the servicing and origination of mortgage loans in the United States and internationally. The company’s Servicing segment provides residential and commercial mortgage loan servicing, special servicing, and asset management services to owners of mortgage loans and foreclosed real estate. This segment primarily offers services for subprime residential loans. Its Lending segment is involved in the origination, packaging, and sale of agency mortgage loans into the secondary market. Ocwen Financial Corporation was founded in 1988 and is headquartered in Atlanta, Georgia.

Please take a look at the 1-year chart of OCN (Ocwen Financial Corporation) below with my added notations:



OCN had traded mostly sideways from October until breaking higher in May. Since March the stock has shown a tendency to always find support on the increments of $5 (blue). For example, in March and April $35 acted as support. Then $40 was support in May and June. There was support at $45 in July, and $50 here recently. So, identifying this trend should help when it comes to identifying when to enter a trade on OCN.

The Tale of the Tape: OCN is currently trading above the $50 level. A long position could be entered at $50 or on a break above $55 with a stop placed below the level of entry. If OCN breaks below $50, another long play could be made at $45.
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