When evaluating the chart of Universal Display (OLED) we see a stock that is clearly in the midst of a downtrend. With a series of lower highs and lower lows, that is the textbook pattern which defines a downtrend. As simple as that.
But we can also look to other indicators that may give us clues to when that downtrend might be ending and how much influence the indicators may have on the price chart.
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As mentioned, the chart does not look bullish. We can see the heavy dose of purple and pink candles, which in the GoNoGo system tells us the chart is bearish - heavy or weak. We always respect the chart/price action as it is our primary view.
However, the supporting indicators appear to be trying to turn upward, and that might make a difference.
Money flow (bottom pane) is weak, but the stochastics momentum has turned higher, while the MACD (moving average convergence divergence) is about to cross over for a bullish signal.
We don't see this stock "getting away" from us though, rather this recent bottoming pattern looks ideal for chipping away and adding to our position which is what we did earlier today.
At the time of publication, TheStreet Pro Portfolio was long OLED.