Don't Ignore This Chart!

Is The Viacom (VIAB) / Sumner Redstone Battle Investable?

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Viacom (VIAB) stock is in the crosshairs of the Sumner Redstone battle. With so many issues surrounding the stock, it seems to be a disaster in progress. This morning, Viacom announced that their third quarter earnings would come in below expectations, but the stock continued to rally. Let's look at the sentiment of investors.

First of all, the SCTR has moved above 75 which is a flag pointing to outperformance. The Relative Strength in purple has broken the 1-year downtrend and is now starting to make 4-month highs. It is an important point on the chart today as the stock is trying to climb to 6-month price highs. Thursday's volume was over 10 Million so some buyers were showing up for work. While the MACD seems to be swinging between buy and sell signals, the fact that it is residing above zero is bullish.

Sometimes the eye of the storm can generate great profits. In a company that produces entertainment for clients, perhaps the stock price can continue to amuse investors.

On Thursday, I recorded a Commodities Countdown Webinar 2016-06-16. As Commodity ETF's currently dominate the top 25% of the ETF SCTR rankings, the opportunity within the commodity sphere seems to be increasing. It might be timely to take a look over your morning coffee. 

Have a great Father's Day Weekend and enjoy the US Open!

Good trading,
Greg Schnell, CMT, MFTA

Announcement from the Author

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Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com specializing in intermarket and commodities analysis. Based in Calgary, he is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the Market Technicians Association (MTA) and the International Federation of Technical Analysts (IFTA).

Greg is also the co-author of Stock Charts for Dummies (Wiley, 2018). Greg joined StockCharts.com in 2012 and has be instrumental in helping launch a variety of new blogs and other commentary platforms. Presently, Greg contributes market analysis commentary to The Canadian Technician, Commodities Countdown and Don't Ignore This Chart blogs. Learn More
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