Symantec Pulling Back

 | May 19, 2017 | 12:07 PM EDT
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Symantec (SYMC) has pulled back in recent sessions. Whenever a stock dips the big question is whether this is a pullback within an ongoing uptrend or is it the start of something more serious. Let's talk a look at the daily and weekly charts and our go-to indicators to see if we can answer the big question.

In this daily bar chart of SYMC, below, we can see how prices have broken below the rising 50-day moving average line and so far there has not been a return move to the underside of the line. Also, prices have broken some nearby support around $30. Volume has increased on this recent move lower and the daily On-Balance-Volume (OBV) line has turned down. In the lower panel is the 12-day momentum study which has not signaled any bullish divergence yet.

This weekly chart of SYMC, below, is still in good shape, technically speaking, but there is a soft spot. Prices are above the rising 40-week moving average line and it will take a close below $27 to break it. The weekly OBV line is strong but the latest entry is a decline. The Moving Average Convergence Divergence (MACD) oscillator is crossing to a sell signal above the zero line which means take profits on longs. 

SYMC has done well from the 2008 low. Since June (find the 6 on the chart) prices have gone straight up to $33. Prices are pulling back and on this kind of chart there is no visible chart support until $20. 

Bottom line -- the prior corrections for SYMC were sideways and this current correction is to the downside. The $26-$24 area stalled the advance for four months last year and this zone should act as support on this pullback.

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