Ovid Therapeutics Inc. (OVID)

OVID stock forecast: buy or sell

OVID stock outlook

  • Ovid Therapeutics closed on Friday at $7.19 (3.75%) prior to reporting earnings at
  • On Thursday, Ovid Therapeutics presented its Q2 financial report
  • From the chart point view, price is drawing a scaled uptrend since mid-March with higher tops and higher bottoms. Up to date, shares made a 299.44% profit since the beginning of this rally
  • Ovid Therapeutics Inc., a biopharmaceutical company, develops impactful medicines for patients and families with neurological disorders in the United States.
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The opinions published in this article are personal and not recommendations for you to buy or sell stocks. The author of this article does not have an understanding of the particular circumstances of the reader, his or her financial statements or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are posted for educative purposes only

OVID stock chart overview

Should I buy Ovid Therapeutics stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is OVID stock a buy?

In the current situation of Ovid Therapeutics there is just one buy setup eligible:

Uptrend buy setup

Ovid Therapeutics stock continues to trend higher since in mid-March and marked an amazing 299.44% gain. Price marked a local bottom in this uptrend at $6.04 on July 29, and since then it bounced off a 19.04%. Now, it's just 30.74% away from breaking out above its last top and resume the uptrend. The new buy point is therefore at $9.40. If you decide to enter this trade, the suggested stop loss is at $8.46

Buy setupBuy pointStop lossRisk
Uptrend buy setup$9.40$8.4610%
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Should I sell Ovid Therapeutics stock?

Knowing when to sell a stock is even harder than knowing when to buy it. Trading strategies help us to avoid impulsive decisions based on our sentiments or the noise surrounding the market. We like very simple setups to guide us on when is the best time to sell a stock. Be aware that these setups should not be used for selling short Ovid Therapeutics stock

As a golden rule, you must never keep an investment that generates higher than expected losses at the time of the buy. The moment to sell your stock must always be dictated by the stop-loss (automatic or manual)

Is it time to sell Ovid Therapeutics stock?

In the current situation of Ovid Therapeutics there is not any eligible sell setup, so Ovid Therapeutics stock holders with operations in profit can keep their positions

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Analysts' recommendations to buy or sell Ovid Therapeutics stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

We don't have any rating published in the previous month for Ovid Therapeutics

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Technical analysis

Ovid Therapeutics stock started an uptrend in mid-March, and gained an amazing 299.44%. During this uptrend, the price offered some entry points on the breakouts. Latest low was on July 29, when price bounced at $6.04. Now, it trades in a consolidation between its last top ($9.40) and its last bottom ($6.04)

SMAs overview

A favorite tool of many traders are the moving averages, that easily show trend momentum. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

Supports and resistances

Technical analysts use support and resistance levels to find price points in the stock price action that tend to work as barriers, containing the price of an asset to move up or down. Supports are levels where the price tends to find support as it falls. Price is more likely to "bounce off" this level rather than break through it. Nevertheless, if the price breaks down the support, it is likely to continue falling until meeting another support level. In contrast, a resistance level is where the price may find resistance as it rises. Likewise, the price is more liable to "rebound" at this level, and if it finally breaks this level, the price will rally easily until it approaches the next resistance

The current resistance levels are:

  • R1: $7.21 (0.28% above)
  • R2: $9.40 (30.74% above)
  • The current supports are:

  • S1: $6.04 (-15.99% below)
  • S2: $5.24 (-27.12% below)
  • S3: $4.82 (-32.96% below)
  • Bollinger bands

    The so-called Bollinger bands are a well-established technical strategy created by John Bollinger. It is made up of 3 bands that are outlined superimposed on the price evolution chart:

    • The central band is a moving average, usually a simple moving average calculated with 20 periods
    • The upper band is calculated by adding to the value of the simple moving average 2 times the standard deviation of the moving average
    • The lower band is calculated by subtracting from the simple moving average 2 times the standard deviation of the moving average

    Since the price broke down the lower band on July 29, the price has bounced up by 19.04%

    Relative strength index

    The RSI (Relative Strength Index) is an oscillator-type indicator that measures price action to identify when the price of a share or financial asset is overbought or oversold. Oscillator indicators, such as relative strength, are intended to indicate values in the range of 0-100. J. Welles Wilder introduced the relative strength indicator in 1978 and since then it has been widely used by traders

    The RSI dropped below the overbought level of 70 in late June after just crossing to the overbough zone for 1 day (weak signal). The RSI reading on Friday was 55.89. Since then, Ovid Therapeutics price collapsed a 8.87%

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    Earnings and financials

    On Thursday, OVID had the quarterly financial event and presented the 2nd-quarter report. The analysts estimate is a an EPS of $-0.35, that is a 14.63% less than last reported quarter.

    In contract, the EPS for the same quarter last year was $-0.34, so posted EPS is a improvement of 100%. Looking at turnover, figures scarcely changed compared to $0.00 same quarter 12 months ago.

    OVID presents quarterly earnings report. If you own or you are looking to buy OVID stock, you must be vigilant as financial reporting day usually has a very high volatility, and price can gap up or down with unsually low liquidity and not honouring your buy/stop-loss orders. Check company's website to confirm time and details about the earnings call and the earnings report.

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