The Forecast Is Cloudy for First Horizon National

 | Mar 17, 2017 | 1:04 PM EDT
  • Comment
  • Print Print
  • Print
Stock quotes in this article:


First Horizon National (FHN) has weakened slowly this month. I cannot clearly tell if investors have been scale-down buyers or if FHN has fallen of its own weight. Until things are clearer on the "horizon," I would defer purchases of FHN.

In this daily bar chart of FHN, below, we can see repeated attempts by FHN to reach $21, but every rally so far above $20 has failed -- and prices are now below the lows of January and February. The slope of the 50-day moving average line has turned down. The 200-day moving average line is still rising.

The On-Balance-Volume (OBV) line is an issue in that it peaked in December and has been slowly declining. A declining OBV line is a sign that selling has increased during the price weakness. Increased activity selling on a decline says that investors and traders want out. The Moving Average Convergence Divergence (MACD) oscillator is in bearish territory below the zero line -- an outright sell signal.

In this weekly chart of FHN, above, we can see that prices made a big markup last year. It may be hard to see, but the recent price action shows a downside reversal -- a close below the low of the high week. This reversal does not give us a price target, but it is relatively quick turning compared to other reversal patterns. The weekly OBV line has been trending lower over the past three months and the MACD oscillator just crossed to a take-profits sell signal on a weekly timescale.

In this Point and Figure chart of FHN, above, we can see an upside breakout from a large base. We have an initial upside target of $34.50 for FHN, but it is almost in a 3-box down column and a deeper dip to $18.50 will do it.

Bottom line: FHN looks like it could achieve higher highs in the long term, but unfortunately in the short term it looks vulnerable to further declines. I would not look to buy or short FHN here. I plan on standing aside until things look clearer.

Columnist Conversations

there is some very heavy selling today and poor price action in Facebook today.  in the first hour the st...
Stock has been roasted last five trading sessions. Time to rotate into Ford ahead of big CEO long-term plan re...
Equity futures were up slightly just before 9:30 PM Sunday night.
Spent a good amount of time with PayPal CEO Dan Schulman this week...and came away fully understanding why thi...



News Breaks

Powered by


Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.