Oritani Financial stock looks like a good continuation pattern setup on the chart. The tricky thing about this trade is the last 2 weeks in September. First, let’s take a look at the chart and then I’ll explain how to handle the seasonally weak last two weeks in September.
Prices have been consolidating lately and the volatility has been reduced. Large players volume is starting to turn up which is a bullish sign. The Twiggs Money Flow is positive and rising fast which suggests that ORIT stock is being accumulated at the current price level. The play is that ORIT stock is in a continuation pattern and that the candle over candle bounce off uptrend line (green) support is the beginning of the next leg up. But what if it’s not? What if it’s too early to go for a swing long play on ORIT stock? Set a mental stop loss just below $16.10 so if the candle over candle reversal turns out to be a headfake, we exit the trade for a small loss.
My target on this swing long trade is $16.55 because of the last two weeks in September. Ultimately though, I think ORIT stock could run up to $18.50 by the end of the year as the Financial sector’s seasonally strong time of year hits in November.
There’s no rush to get into ORIT stock right now, or really any stock unless it’s a biotech stock with a big catalyst event coming. With the seasonally weak last 2 weeks in September approaching, I almost didn’t even do a write-up on this stock.
ORIT has an annual dividend yield of 6.21% and pays a quarterly dividend.
I’m not adding ORIT to the long-term buy and hold Financials portfolio because the fundamentals on this company are not strong enough due to the falling revenue over the last few years.
Disclosure: I do not hold any position in ORIT stock.