Osim – Opportunity in the making?

Trend: Downtrend, 20ma down, MacD below 0

Support: 0.905 (100ma), 0.84 – 0.845 (Rising window)

Resistance: 0.985 (20 & 50ma), 1.07

Observations
Candlestick – White candle.
Histogram – 3G. No Bullish divergence is seen.
RSI – Turning up from oversold. No Bullish divergence is seen.
Stochastic –No Bearish crossover yet.
Bollinger Band – Bounce off lower band and heading towards mid band.

Conclusion:
Osim has been retreating significantly from its high of 1.08 and had hit a low of 0.905 recently. Will this be a good opportunity to go long or has this counter start to show downside risk?
The trend of Osim is obviously showing a downtrend as indicated by the indicators. But based on price movement, it has yet to form a lower high to confirm the downtrend. Hence, Osim might have a possible rebound to resistance level to form a lower high. The immediate resistance stands at 0.985 level where it has close confluence with 20 & 50ma, therefore, this could be a strong resistance level. However, if the price manages to breaks 0.985 resistance, the next resistance will be 1.07. If the price is to reach 1.07 level, the trend of Osim might not be downtrend anymore.
As the trend is downtrend, resistance level should hold and on top of that, 0.985 is a strong resistance level, hence, chances of lower high being formed at this level could be high. Based on the indicators, there are still no signs of bearishness which means Osim might have a potential to reach 0.985 resistance level. But if bearish signals are to be formed at 0.985 resistance level, it could mean that lower high would be formed and downtrend could continue. If that is so, Osim might test the immediate support of 0.905 and might even head towards 0.84 – 0.845 window support is the downtrend is strong.
In conclusion, as the upside is limited due to downtrend, one should try to avoid the long side despite the significant drop in price. But good shorting opportunity could come if there is a bearish signal formed at 0.985 resistance level.
What to watch out for this week:
1) Testing of resistance of 0.985
2) Bearish signal forming at 0.985 level

Trading strategy to adapt right now:
- Wait for bearish signal to be formed at 0.985 level before initiating a short.

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