Dallas, Texas 04/22/2014 (FINANCIALSTRENDS) – Ocwen Financial Corp (NYSE:OCN) on the daily charts has been in a downtrend right from the beginning of 2014. The stock had broken below important support levels but in the last couple of days has broken out and is currently taking support at its 50 day moving average which stands at $38.92. On the daily chart the stock has formed an inverted hammer which is a bearish sign and we believe that if the stock breaks below the key support zone at the 50 day moving average we can see the stock slide down to levels of $37.09 in the very short term.
The momentum indicators of Ocwen Financial Corp (NYSE:OCN) are currently in the negative and though they tried to show some kind of resilience but have been met with good resistance at $40 levels and have retraced back and can be seen showing bearish signs. Similarly the relative strength index for the stock have turned course and are showing signs of a break down and therefore the support at the 50 day moving average plays a very important role in determining the future course of price for the stock.
On the weekly charts, the downturn seems to have been stemmed and the stock has taken very good support at levels of $34.15. The momentum indicators for the stock are in negative territory and trying their level best to show some kind of reversal but that completely depends on the stock bouncing up from the 50 day moving average on the daily charts. If the stock fails, then we can see some more downside and we can see the levels of $34.15 in the coming few weeks.
(Figure): Daily chart for Ocwen Financial Corp (NYSE:OCN)
Ocwen Financial Corp (NYSE:OCN) delivered a good set of earnings beating street expectations and most institutions have upgraded the stock to a “Buy”.