Online Resources Corporation (NASDAQ:ORCC)

The company provides outsourced, Internet financial technology services; branded to over 800 financial services provider clients nationwide. The Company’s Quotiensm product line is designed for banks, credit unions and other depository financial institutions. Its incurrent product line is designed for credit card issuers and processors. Its CertnFundssm product line has been recently introduced and is designed for e-commerce providers, primarily payment acquirers and large online billers. The Company provides proprietary account presentation, payments and relationship management services that enable its clients to maintain a competitive and profitable web-based channel. The Company provides its financial services provider clients with account presentation, payments, relationship management and custom solutions services. The Company currently offers account presentation services to banking and credit card markets. (Bigcharts)

Currently the stock trades for $10.25/share. The reason this particular play jumped out at me is due to the fact that on both time periods (one-year weekly & six month daily) we have a positive divergence occurring between the price and MACD indicator.

I will first zoom in on the longer-term one-year weekly chart to give you an overall picture of where the price of ORCC is likely to go.

In this graph you will notice that as the price of ORCC is declining, the MACD has begun to trend north. You can then infer that price will soon begin to follow suit. One thing that I should mention is that the MACD is not yet showing a buy signal (black line crosses above the red). This should be an indication to sit on cash for about another week or so until the buy signal is confirmed.

The graph below is on a shorter-term six-month daily chart. The purpose of this graph is to decide as to whether or not we can be frugal enough to time the trade right and shave off a few cents in purchasing cost.

As you can see, there is also a positive divergence forming on the short-term chart as well, only this time the RSI is joining the party alongside the MACD.

Bonus!

Typically, when you have buying signals occurring at the same time on charts plotted against different investment time horizons it is a safe bet that the stars are aligning just right for a solid stock play to throw into that portfolio of yours.

Note: This investment idea will not be placed into the Jutia Portfolio until all investment criteria has been met. In this case, I am looking for both the DMI and MACD to turn positive on the one-year weekly chart. However, if you would like to place a stop loss so as to reduce your risk exposure you should be just fine