Chart of the Day: Universal Display Flickers, But Don't Look Away
Recent failure to hold support appears to dim outlook, but stock could be ready to power up soon.
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When we last viewed the chart of Universal Display OLED, we were looking for good support to hold near those August lows. That did not happen. But that low in August was made with some heavy volume, indicating a panic-sell event occurred. We felt this level (call it $163-165) would hold firm, but it failed to hold when tested in November.
In fact, while the rest of the stock market was rallying sharply that month OLED was reeling.
So, now we have a strong bearish trend in place with lower-highs, lower-lows.
OLED is now a stock with very little bullish momentum and bearish money flows. But this stock has been down this road before. It's a volatile name that can rise up from the ashes as fast as it comes down.
We do have some support back at those November 2023 lows (shown on the left side of the chart). As you can see, the stock was bearish back then, just like it is now, but leapt forward afterward for a nice gain. This time around, we don't know where or when the stock is going to land, but we have some room to add to our position.
We like Universal Display in the Pro Portfolio and rate it a "One," or buy at anytime.
At the time of publication, the Pro Portfolio was long OLED.
