Owens-Illinois Inc. (NYSE:OI) Profit Taking After Huge Sell Off

Boston, MA, 04/23/2014  (usastockreport) –   Owens-Illinois Inc. (NYSE:OI) managed to close in green after a substantial loss on Monday, the stock gained around half a percent on Tuesday. The stock traded in a very volatile manner with strong resistance around its 50 day moving average of $33.21.

Owens-Illinois Inc. (NYSE:OI) saw a little upside on Tuesday after its volatile performance in the previous month.  The stock is trading inside a triangle. A breakout from this triangle would give a target of around $39. It is better to wait for the stock to touch the lower channel before entering long positions, as some more downside seems to be left in the stock.

The momentum indicators on the daily charts are in the positive zone, but show no momentum on either side, we believe the stock may continue to trade in a volatile manner and see some upside before a correction comes in. The relative strength index has shown a positive turn upwards indicating a bullish trend, but as the stock has behaved in the past, the stock might correct after hitting its previous high of $34.65

On a broader time frame, the weekly charts give a similar picture, the has been trading in a very narrow range with $34 on the upside on $32.24 on the downside, the technical indicators are giving a sell signal, we believe the stock has a weak upside and may correct after making some gains in the next few trading sessions.

According to the daily charts the stock has a good trend line support around $32.45 and a strong resistance around $34 levels.

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(FIGURE): Daily Chart for Owens-Illinois Inc. (NYSE:OI)

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Owens- Illinois Inc. stock saw a confirmation of its rating to “Neutral” by The Citibank Group Inc. analysts, the report was released via American Banking and Market News which is an online portal for stock reviews. The price target for the stock was increased from $36 to $37

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