Fitbit (FIT) has been in a downtrend for most of its trading history. Unfortunately the charts do not currently suggest a turnaround or end to this negative trend.
In this one-year daily bar chart of FIT, below, we can see that FIT traded sideways from February till the end of October. At the beginning of November FIT gaped sharply lower on huge volume as investors voted quickly and sharply with their feet. Since that early November gap prices have continued to grind lower. Prices are below the declining 50-day and 200-day moving average lines.
The On-Balance Volume (OBV) line turned lower at the end of September before prices really broke lower. The momentum indicator has yet to give us a strong bullish divergence.
We don't have a lot of price history to work with on this weekly chart of FIT, above. Prices are below the declining 40-week moving average line. The weekly OBV line is bearish and so is the MACD oscillator.
Bottom line: Without any signs of a bottom there is little reason to suggest buying FIT.
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These recently downgraded names are displaying both quantitative and technical deterioration.
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