Synchronoss Technologies Gets a Bear Hug

 | Feb 17, 2017 | 12:19 PM EST
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Stock quotes in this article:

sncr

Synchronoss Technologies  (SNCR) has slumped sharply since early December, breaking below the declining 50-day moving average line and the peaking 200-day moving average line.
 
Let's check closer to see what the charts have in store.
 
 
 
In this 12-month daily bar chart of SNCR, above, we can see how prices have shifted gears since June. We can see a bullish golden cross that month as the 50-day moving average line turns above the 200-day moving average line. Today, we can see the 50-day average moving below the 200-day average for a bearish death cross of these popular averages. SNCR has already broken the support in October around $36 and looks poised to test next support in the $33-$29 area.
 
The volume pattern is interesting in that it spikes or surges in November as prices gap to the upside and surges as prices gap down in December and February. The On-Balance-Volume (OBV) line peaks in early December and generally works lower the past three months. Momentum is slower on the February decline compared to the December plunge, but this bullish divergence may not be enough to reverse the decline.
 
 
 
In this four-year weekly chart of SNCR, above, we can see prices are below the flattening 40-week moving average line. The weekly OBV line is interesting in that on the recent rally to $50 on the OBV line stopped so far below the peaks seen in 2015. The weekly Moving Average Convergence Divergence (MACD) oscillator is moving below the zero line for an outright sell signal.
 
Bottom line: With both the daily and the weekly charts looking weak, traders and investors should use available strength to reduce longs or even to short using a buy stop above $40.

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