Sector: Financial Services 

Requested by a member of Growth and Sell Strategy for Share Traders Group

* Full disclosure: We don’t hold this stock and we have chosen to trade Z1P instead OPY).

In September 3rd we have issued an analysis for Open Pay and we have highlighted the yellow circle 🟡  which soon has become a bearish intersection.

We also used BGS 20 Strategy indicador showing that if the SP was doing a bearish intersection, then a stop loss protection would be a must if we were trading this stock, we even indicated the protection and the stop loss of $3.3. 

📄  Read full analysis using the link bellow.

https://www.facebook.com/groups/bgtrading/permalink/2377013929270845/

Well, the stock price fell well bellow and it is now trading on bearish area.

OVERVIEW OF THE COMPANY

https://investors.openpay.com.au/site/PDF/80286340-80c3-4c6e-8f97-c0b1bab4aaa7/InvestorPresentationFY20

Full FY20 investor presentation (use link bellow)

WHAT OUR KPI’s ARE TELLING US

✅  Volume has been substantially decreasing over the downturn since the SP hit the double top formation.

✅  Heiken Ash shows two consecutive green candles showing the down trend has weakened.

✅  SP is now doing a bullish interaction on EMA

🚩  Descendent triangule formation in the stock is helping pushing SP and it has tested $2.5 levels couple times, likely to test again if follow the pattern movement highlighted in white on the chart.

🚩  EMA and SP are still trading on bearish territory (under SMA). 

🚩  We wouldn’t buy if we already have exposure 

✅  Despite the competition fundamentals shows another strong quarter performance, despite the worldwide economic slowdown, and steady growth on the businesses operations.

Overall, we have 3 indicators showing that SP could be about changing direction, therefore putting OPY a buy opportunity at the current levels.

If we were buying this stock now we would be looking for bullish intersection of EMA on SMA over the next 2-4 trading days in order to be protected from a fall. According to BGS 20 Strategy any buying made bellow SMA, setting up a stop loss is a critical countermeasure, in this case a stop loss under $2.5 is critical to protect capital.

Hope it helps and good luck!

Disclaimer:

Note that although we have been investing in the Australian Stock Exchange and other markets over 10 years, we are not financial adviser, anything you read within this group is NOT financial advise; it is general information only and we strong recommend to consult a financial adviser before making any investment decision that could have significative impact on your wealth*