Chart of the Week: Ouster
It’s time for our chart of the week, and this week we’re gonna be focused in on a new name that we haven’t focused on before. A name that just came up on my radar screen thanks to some good people in our chat room. It’s called Ouster; symbol OUST. It is on the IBD Stock 50 list of names, so let’s take a look at this chart. The stock came out with earnings last week and looks like we’ve got some pretty good opportunities right here.
So let’s take a look at this chart here right now. You can see from the low in April, the stock has made a really nice run. Came back up here through a little bit of a cup and handle pattern. Did a low of about $5 in April and it’s now sitting around $30. So that’s a 500 plus percent gain in Ouster.
The stock had a nice run up in relative strength here – you can see that here – and held there nicely for a good part of the month of June.
MACD not doing all that great right now. But it’s looking like it’s going to cross over for a buy signal right over here imminently in a couple of days.
Some really heavy volume last week on Friday after the earnings were released – went all the way up to $32. Fell and closed at the lows, but notice here that the stock closed right on the 20 day moving average on Friday. And it had an inside day on Monday, August 11.
So as it’s trading within the confines of this range here, let’s call it about $25 – $33, we’re looking for the stock to tighten up, consolidate a little bit here for a week or two and then make a run at those old highs. Of course, closing above here would be extremely bullish, and that’s about the $31 area.
Relative strength is starting to move back up again. Volume trends are bullish here.
And we think this stock has got some legs to it – probably get to mid-$40s to low $50s over the next four to six months.
So take a look at Ouster over here. It’s got some great, strong momentum and it’s in a good space as well too. So that’s OUST. Thanks so much for watching everyone and I’ll see you guys next time.
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