ONON is back to the scene of the crime – June 18, 2024
This is Scott McGregor at Scott Trades on Twitter with StockMarketMentor.com and your Chart of the Day. I want to take a look at On Holdings ( NYSE: ONON ).
This is the shoe company, with the shoes with holes in the bottom. I just bought a pair of On Shoes for me, and I just bought a pair for both of my kids as well. That prompted me to take a look at this chart and get an update on it, what is this chart doing exactly? I hadn’t looked at On Holdings ( NYSE: ONON ) for a while. It’s not a semiconductor stock so why would anybody talk about it?
The stock is holding up okay here right around that 21-day exponential period moving average. You can see here in mid-May, they had positive earnings, a 140 percent surprise to the upside on EPS. We got this big gap and a ride up that 8-day exponential period moving average. The last couple of days it’s been pretty wide and loose, pulling under the 21-day, and getting back above the 21-day.
I definitely see the stock as needing to reset and consolidate a little tighter. If I zoom out here we can see that this stock is right near, what I call, the scene of the crime. That’s where the stock started to break down and went down for a while. So we’re back just under the scene of the crime here with ONON ( NYSE: ONON ).
I definitely think that the level here, right around 44.00, let’s say 44.40 is an important zone that you should watch for a breakout on, Now, I don’t think this breakout is going to happen anytime soon, just because it has been so wide and loose. But I’m going to set an alert here on my software and look for a breakout through 44.40 coming on volume.
Now again, this could probably tighten for a couple of days, maybe even a couple of weeks. But I would keep an eye on this just because if it can get above this high here, it may rip back up to that 56.00 area, which is the enthusiasm high from its IPO here in 2021. That could give you, at least, a nice swing trade target if it does break up above 44.40.
While it’s not a right-here-right-now idea, I think it makes sense to set an alert on this. And while you’re at it, you’ve got to give these shoes a test drive. Even just try them on in the store, they’re pretty cool. They feel like you’re up above the ground, they’re nice and cushy and I can see why runners like them.
Free Chart