 folks welcome to our technical analysis of ocean power technologies take a symbol OPTT I did some commentary on OPTT back on October the 10th I'll link to it at the end of this video obviously posted on YouTube and by far by far one of the most highly rated pieces of analysis that I've ever done and oddly enough and I didn't expect it one of the most requested commentaries that I follow up on so it's time because two of the major concerns that I had about OPTT back on October the 10th those obstacles by and large have been overcome so what we're going to talk about on this video first will be some changes to the fundamentals then we'll talk about the political fallout from the election and whether that's a negative or a positive for OPTT and then we're going to spend a good amount of time dedicated to the technical analysis using a multi-time frame technical analysis meaning monthly charts weekly charts daily charts just like we did the last time we want to stay consistent and before we go into all of those new conversations we're going to begin by playing a clip from the last video bringing you up to date of a summary it's about two and a quarter minutes long I was going to cut it back some but if you know what let's go let it go long so everybody gets a good feel for how I was strategizing about OPTT back in October of 2020 but before we go to our technical analysis let me introduce you to our friends over at Trendspider they are sponsoring our commentaries folks Trendspider we leverage here all the time to automate our groundwork it allows us to speed up our technical analysis and improve our accuracy this is the same software that we used back in October when we pretty spot-on nailed what would happen with OPTT and it pretty much nailed the entry point of as to where you would want to open up a position so this is a perfect test case of showing you how to leverage Trendspider and how you could have made automated technical analysis work for you by reducing costly mistakes find it winning charts setups and time your trades with precision and that's exactly what we did back in October and that's exactly what we'll do moving forward as we begin to build a position in OPTT there's a link below 35% off explore their product they have a demo take a few minutes seven day free trial offer and it's included with our silver and gold level memberships for free members to the contrarian trader dot com also a link below let's get to my commentary regarding OPTT back on October the 20th what is most optimistic from a long term perspective with regards to OPTT is this keep in mind what the share price is doing on a monthly basis it is breaking out and what I always teach members is this is that the longer the consolidation keep in mind this is a multi-year consolidation on a monthly basis the longer the consolidation the greater the validation of any breakout so on a long-term view monthly view I'm bullish on the share price not overly aggressive but bullish on the share price on a short-term time frame I become a little bit more pessimistic for two reasons one technical to the election we'll talk about both now on a technical basis we closed out last week as I mentioned earlier above the third standard deviation Bollinger Band so automatically the fact that we're trading above the third standard deviation Bollinger Band and the fact that we had a wick shadow topping tail call it cupcakes whatever you want to call it on top of this candlestick implies to me that we're going to get a consolidation not a crash but a consolidation and when you take a look at the daily chart we closed out the day on this past Friday right at resistance so do I want to buy at a resistance level not really so short term I'm cautious but cautiously optimistic what was that number two that I said earlier that was a concern about the share price the election folks if you see a biden presidency you'll want to be long of ocean power technology now if you see a trump reelection that does not mean sell the shares it just means that you don't have the green new deal put underneath the share price as you would with the reelection of president trump so to reiterate where I long at current I would hold my position would I buy the shares longer term yes but the short term is I would wait for a pullback then initiate a new position at a support level so in closing our opinion that the contrarian trader is that the share price on a longer term basis meaning a monthly basis the trend is beginning to change from a downward sideways correction and consolidation to now the beginning of an uptrend on a short term basis would I buy the shares no not quite yet I think that short term there a hold where I currently long but if we do get a pullback to our support level they then become a buy what are the catalysts to help drive the share price higher it won't be short covering there's very little in terms of short interest what would put a put under the share price is a biden presidency so as you just heard my two main concerns about OPTT were one the technicals two was the election it was less than 30 days away and it was a major concern of mine so as we all know now we have a president biden a very renewable energy friendly administration which has already issued executive orders this is off of the federal register this is a list of joe biden's executive order orders thus far all done on the same day and executive order 13 990 protecting public health and environment and restoring science to tackle the climate crisis i'm going to skip over a lot of this but where this really begins to not necessarily impact OPTT but it'll it'll it'll give you some insight as to the attitude of the biden administration relative to the trump administration section 6 revoking the march 2019 permit for the keystone xl pipeline gone doesn't exist anymore the biden administration has already rejoined the paris climate accords also in this executive order section 4 the arctic refuge the secretary of the interior shall as appropriate and consistent applicable with law place a temporary moratorium on all activities of the federal government relating to the implementation of coastal plan gas and leaks leasing program as established by the record of decision august 17th 2020 moratorium more or moratoriums pursuant to section 12 of the outer continental shelf lands act executive order 13 754 the presidential memorandum december 2016 are hereby reinstated in their original form thereby restoring the original withdrawal of certain offshore areas and arctic waters and the bearing sea from oil and gas drilling there's rumor i haven't seen any formalized announcement yet and if anybody's seen it please pass it along to me but the rumor is being floated that the biden administration will at a bare minimum cut back subsidies to fossil fuel companies and perhaps wipe them out and diverting those funds to renewable companies that would be very bullish for anything renewable moving on to some technicals and some analytical changes we went over this company research report this is a fidelity report which aggregates a bunch of data from different sources now this data is as of the 31st of october the last report that i discussed back in in october was dated july the 31st of 20 and at that time you had revenue growth was 105 percent that's changed to 80 spot for 8 percent eps growth was 84 spot 6 percent it is now 80 spot 2 percent i don't read all too much into these numbers why you're dealing with very small numbers this is a micro cap stock so by no stretch of the imagination does the decline in revenue and eps growth dissuade me from wanting to buy the shares now back in october you had one firm with a sell rating that has since gone to a hold which is for all intents and purposes a sell but they've certainly softened up their tone regarding the company and the equity summary score was back in october bearish it is now neutral not that this really makes any difference it just goes to show you though that despite the fact that you're seeing uh some i'll say bearish trends for the lack of a better word bearishness relative to prior periods these are still very good numbers you're seeing more optimism or less pessimism on the part of the analytical firm that's covering them now moving on to technical analysis we spent a good amount of time during my last commentary speaking about the monthly chart and the monthly chart has only gotten better as a reminder these shares have built a multi-month consolidation from which we have broken out and the automated trend line functionality on trend spider click of a button here you would have seen that breakout back here in april of 2020 and what a return that would have been even if you would have gotten at the highs of the month at 80 cents per share well you've had a heck of a ride because the last closing price this past friday was five dollars and sixty cents so a very very nice move higher for opt now i will say this on a monthly time frame we are yet again extended relative to the third standard deviation boulder band but this can go on for a while this is a renewable play it's a hot sector from which we have been breaking out of very strong resistance levels now drilling down to a weekly chart you'll remember back in october i was somewhat skeptical on the share short term i was concerned about them being somewhat overbought at the time we were trading above the third standard deviation boulder band on a weekly time frame it doesn't end well it rarely does it end well because you're not supposed to be there on a technical basis now i said that in the short term anyway i had a price target of one spot five nine and that would make for a great entry point where did we pull back to where was our low the week of november the ninth we hit a low of 1.54 now how did we know that the one spot five nine mark actually one spot five four was the actual low but close enough for government work how do we know that that was the low how do we know in early october that at some point in time in this case mid november that that price point would be the optimal place to place your advanced order it's simple all we did was we used our trend line we identified where there would be support below by identifying where in the past there was resistance so what was resistance back here in august of 20 should now after a breakout act as support that's exactly what happened now i did have an alert set at this price point that expired as did the weekly breakout point and kind of ticked to myself because it's not trend spiders for it was my fault i should have kept that alert going for at least two months i set it for only a few days so my bad and i missed out on getting in at that higher low in november but a lot has happened since that point in time i know because i keep getting the messages and i keep telling people yeah i'm still bullish i think it's going up higher now as of friday this thing ripped through the ceiling it closed out the week above the third standard deviation boulder band now where i was concerned back in october about who would be present that's since been resolved but the concern with regard to the technicals which had been resolved is now an issue yet again because we're so extended that doesn't mean that optt can't move up higher i think that it's going to the question is from my perspective what's the best risk reward entry point from my view i would love to see a nasty knee jerk pullback three dollars eighty three cents per share touch bounce keep a little bit of sensitivity on okay so here it is on a 30 minute candle opt weekly support hit long entry i'm not going to make the same mistake twice we're going to keep this active i don't think any more than 20 days is necessary and there we have it our alert is set now the indicators stokes moving up higher going the exact direction you'd want them to as is the rsi daily chart so on a daily time frame we could see here yet again we closed out the day on friday for the second consecutive day above the third standard deviation boulder band folks we know from past analysis of optt we've been here before this is not going to end well very short term but this pullback is going to provide an opportunity when do we know to get along click of a button there's our alert it's set for the next 20 days once it fires off we'll look to make sure that we close above this mark if it fails to close above this mark then we look at support levels below where might they be right down here at 351 per share which just happens to coincide with a nice volume shelf i'm going to create another alert there just in case and for this alert i'm going to keep it active for 25 days so there are two alerts critical support at three spot 83 next critical support three spot 51 per share and for those who think that it's not achievable folks go back in history look at the analysis that i did back in october look at the charts and you could see it's totally possible for us to retrace back down to this support level or these two support levels this is a stock that had a one-day move of 22 spot 22 percent on friday and with that folks i want to say thanks for watching this far don't forget that 35 discount code for trend spider use the link below don't forget to subscribe to the channel hit the like button leave a comment i'll definitely get back to some really great comments were left by folks over the past several months i really enjoyed the engagement and everyone have a profitable trading week be well