Back on Dec. 9, 2015 we recommended booking profits on E.I. DuPont de Nemours & Co. (DD) - not a bad call in hindsight. Prices of DD retreated back towards its earlier September lows and a return visit to the charts could be worthwhile.
In this chart of DD, above, we can see a roller-coaster ride from the September low to the December peak and back again. The On-Balance-Volume (OBV) line peaked in December and has come down gently, suggesting some moderate liquidation of longs, but not a wholesale abandonment.
The positions of the 50-day and 200-day moving averages are bearish again, with negative slopes. Unfortunately, our leading indicator -- momentum -- does not show any bullish divergence yet with price.
This longer-term chart of DD, above, is more dramatic, with the big down, the big up and the big down again. Unfortunately, the quick reversals leave little time for accumulation. Even with the big rally in DD, the 40-week moving average is still pointed down. Worse, there is no bullish divergence from the momentum study yet.
It looks like DD will bounce around the low $50s until we see a more sustained accumulation.