Don't Ignore This Chart

One of the Weakest Stocks in the S&P 500 Looks Set to Get Even Weaker

The S&P 500 is near all time highs and we are in a bull market, but Advance Auto Parts (AAP) did not get the memo and recent signals point to new lows. First and foremost, the long-term trend is down because the 50-day SMA is below the 200-day SMA and the stock hit a new low in August. AAP bounced from this August low, but hit resistance near broken support and the falling 50-day SMA. Notice that a rising wedge formed and the stock broke the wedge line with a sharp decline the last four days. This break signals a continuation of the long-term downtrend and a move below the August low is expected. The indicator window shows MACD confirming with a bearish signal cross over the last few days. 

Follow me on Twitter @arthurhill  - Keep up with my 140 character commentaries.

****************************************
Thanks for tuning in and have a good day!
--Arthur Hill CMT

Plan your Trade and Trade your Plan
*****************************************

|

Subscribe to Don't Ignore This Chart to be notified whenever a new post is added to this blog!
comments powered by Disqus