Bears for Omnia Holdings Ltd may still be in the game.

JSE:OMN had an eventful 2022 and managed to rally to highs of R87.75. The stock however ended the year on a lower note as it completed the right shoulder of a H/S pattern it had started painting from September 2021. Beginning of 2023 saw the H/S structure getting broken to the downside and price has since continued forming lower highs and lower lows.

Looking at the current price action, both the 50 Week EMA and neckline of the broken H/S structure were retested mid June 2023 and a bearish engulfing candle confirmed the bearish outlook of the stock. There is a liquidity area between R57.40 and R59.85 that price tested last week and closed with a small bearish candle. Taking into account that this week's candle has not yet closed, anticipation is that it also closes bearish on Friday as confirmation of overall bearishness towards the stock.

To the downside, support targets are R50.00, R37.00, R23.60 and R14.50.

The instrument is currently trading below the 50 Week EMA and has maintained it as resistance since breaking the neckline of the "Head and Shoulders" structure. Only above R65.00 will the current bearish sentiment be off the table and conservative long positions can be looked for.

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