Shares of Paccar (PCAR) are still heading down from an 18-month top pattern and no bottoming action on the chart should keep PCAR on the defensive. Meanwhile, PCAR has received a downgrade from TheStreet Ratings .
This one-year chart of PCAR, above, shows prices moving sideways until the end of July. PCAR promptly started lower and bounces toward the underside of the declining 50-day moving average failed. The On-Balance-Volume (OBV) line has moved lower since late July, telling us that sellers have been more aggressive and volume has been heavier on days when PCAR has closed lower. Trend-wise, the Moving Average Convergence Divergence (MACD) oscillator has been below the zero line since August.
The prices for PCAR have declined so much this past year that we needed to look at a five-year chart. The 2014-2015 top is big and has resulted in a steep decline, but with no bottoming price action evident, a test of the 2012 lows could be in the cards. A retest of the $35 to $40 area is within reason.