Ocean Power Technologies Inc (NASDAQ:OPTT) Overbought

Ocean Power Technologies Inc (NASDAQ:OPTT) Overbought

Ocean Power Technologies Inc (NASDAQ:OPTT) Overbought

OCEAN PWR TC closed up 4.510 at 6.040. Volume was 34% above average (neutral) and Bollinger Bands were 360% wider than normal.

Open High Low Close Volume___
1.650 6.790 1.650 6.040 42,148

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 1.95 1.96 2.59
Volatility: 792 378 219
Volume: 12,822 17,454 28,639

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.


OCEAN PWR TC gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
OCEAN PWR TC is currently 133.0% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of OPTT.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on OPTT.O and have had this outlook for the last 0 periods. Our momentum oscillator is currently indicating that OPTT.O is currently in an overbought condition.

Growth Rates

Company industry sector
Sales (MRQ) vs Qtr. 1 Yr. Ago -48.59 22.83 9.42
Sales (TTM) vs TTM 1 Yr. Ago -33.45 18.59 5.30
Sales – 5 Yr. Growth Rate 17.79 10.02 8.04
EPS (MRQ) vs Qtr. 1 Yr. Ago 13.43 -55.46 -27.36
EPS (TTM) vs TTM 1 Yr. Ago 24.64
EPS – 5 Yr. Growth Rate 4.52 -3.70
Capital Spending – 5 Yr. Growth Rate 17.48 8.76 32.05


Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 85.7639. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 12 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 91.93. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 55 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 467.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 1 period(s) ago.


The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 10 period(s) ago.

Valuation Ratios

Company industry sector
P/E Ratio (TTM) 50.38 25.48
P/E High – Last 5 Yrs. 51.23 29.68
P/E Low – Last 5 Yrs. 11.15 11.03
Beta 0.93 0.82 1.01
Price to Sales (TTM) 2.47 6.75 3.39
Price to Book (MRQ) 1.89 1.88 1.55
Price to Tangible Book (MRQ) 0.44 2.71 2.32
Price to Cash Flow (TTM) 15.04 10.74

Ocean Power Technologies, Inc. (OPT) is developing and seeking to commercialize systems that generate electricity by harnessing the renewable energy of ocean waves. The Company’s PowerBuoy systems use technologies that convert the mechanical energy created by the rising and falling of ocean waves into electricity. OPT’s PowerBuoy system is based on modular, ocean-going buoys. The rising and falling of the waves moves the buoy-like structure, creating mechanical energy that the Company’s technologies convert into electricity. The Company is engaged in two types of manufacturing activities: the manufacturing of the power take-off (PTO) components, for systems control, power generation and power conversion for each PowerBuoy, and contracting with outside companies for the fabrication of the buoy structure, anchoring, mooring, and cabling.

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S. Jack Heffernan Ph.D. Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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