It looks like investors and traders did not like the numbers this morning from Acuity Brands (AYI), which reported lower-than-expected sales during the fiscal 2016 first quarter. Despite the sharp selloff to date, the charts are still weak.
In this daily chart, above, of AYI we can see that prices are below the shorter 50-day moving average. It looks like prices can retest the still rising 200-day average around $195, just like they did in late September. Note that the On-Balance-Volume (OBV) line peaked in late December. Also look at the bearish divergence in October/November/December, as prices of AYI made higher highs and the momentum study made lower highs, which told us that the rally was slowing.
The clues from this longer-term chart, above, are mixed. Prices are still above the rising 40-week moving average, but that could change. We could see a test or break of the average soon. The OBV line stopped rising on this weekly timeframe. The Moving Average Convergence Divergence (MACD) oscillator has narrowed and could soon cross giving us a signal to liquidate longs. A retest of the September lows for AYI in the $180 to $165 area is not far-fetched for the company in the weeks ahead.