LSE:DXNS – (Dixons Retail PLC) Accumulation taking place?
– If I understand OBV correctly, then if OBV rises ahead of price it means more volume has occurred on up days than down days, and can suggest the slow accumulation of a stock.
– This is creating a positive divergence between price and OBV, which indicates price gains.
– We’re not too far off the historic lows around 6.8 and the decline is losing momentum , which can be seen on MACD etc.
Is stock accumulation taking place? If so then it is too soon to act, but one to observe this year to see if we can confirm any basing pattern and subsequent breakout to the upside.