Okta reverses direction and now looks very weak

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Identity software provider Okta (OKTA) looked bullish at the start of the month, but prices quickly changed direction and fell sharply in recent days. The company is expected to release its quarterly results on December 1.

Let’s see how much the graphics have changed.

In OKTA’s daily bar chart, below, we can see that stocks fell sharply to break October and August lows. A test of the June lows is underway. OKTA is trading below the decreasing 50 and 200 day moving average lines.

The On-Balance-Volume (OBV) line started to weaken and the Moving Average Convergence Divergence Oscillator (MACD) crossed below the zero line for a sell signal.

In OKTA’s weekly Japanese candlestick chart, below, we can see that the stocks have been “rolling” for months now. Prices are trading below the 40-week moving average line. There is some support in the $ 210 area, but a breakout in this area likely means a larger decline has started.

The weekly OBV line has hit lower highs since December. The MACD Oscillator is bearish.

In this daily OKTA points and numbers chart, below, we have a bearish price target in the $ 146 area.

Result strategy: I have no specific knowledge of what OKTA will report. Nonetheless, I would steer clear of any expectations of OKTA ahead of Wednesday’s earnings announcement.

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