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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