LendingTree, Inc. (TREE) is expected to report its latest quarterly earnings numbers tomorrow. We have not visited the charts for a long time. Let's check out the latest charts and indicators to see if they suggest anything new.
In this daily bar chart of TREE, below, we can see that prices have more than tripled in the past 12 months. From $120 in March and April to $400 in January this year, the 50-day moving average line and the 200-day moving average line have maintained bullish or positive slopes the entire time. TREE did trade below the 50-day briefly in October and earlier this month.
The daily On-Balance-Volume (OBV) line has been moving higher the past year telling us that buyers of TREE have been more aggressive than sellers. In the lower panel is the 12-day momentum study which looks at today's price and compares it to the price of the stock 12 days ago. Readings above zero mean the stock is higher than it was 12 days ago. Notice the equal highs in the readings from November through January even though prices were making higher highs. This difference is called a bearish divergence. Bearish divergences can foreshadow declines but the timing is not all that precise.
In this weekly bar chart of TREE, below, we can see that prices have soared four fold in the past two years. Prices are above the rising 40-week moving average line, maybe too far above it.
The weekly OBV line has risen the past two years confirming the price gains but the line looks like it was peaking in December and January. The trend-following Moving Average Convergence Divergence (MACD) oscillator has nearly crossed to the downside to signal a take profits sell.
In this Point and Figure chart of TREE, below, we can see an upside price target of $401.22 -- not a new high. On the downside a decline to $331.25 or $324.72 is needed to clearly turn the chart bearish.
Bottom line: TREE has produced some pretty impressive gains for investors of the past two years. With the charts and indicators starting to show some bearish signals, investors and traders should consider nailing down or booking some profits ahead of the upcoming earnings report.