Shares of Lumber Liquidators (LL) are stumbling ahead of the spring remodeling season.
The stock tried to stabilize and hold from August through November, but prices broke down in January. Shares have remained under pressure, looking up only briefly.
The trend of our favorite short-term technical tools are down. The 50-day and 200-day moving averages are pointed down. The On Balance Volume (OBV) line is negative suggesting that traders are bearish and selling more shares of Lumber Liquidators on days it closes lower.
The second chart of Lumber Liquidators, above, shows the long and painful decline the past two years. Prices are below the declining 40-week moving average. The Moving Average Convergence Divergence (MACD) oscillator is bearish and the OBV line on this timeframe is no help to the bulls.
Traders looking for a turnaround situation, or buying a distressed stock that may be overdone on the downside, will probably be disappointed. Lumber Liquidators has yet to bottom and anxious sellers will likely cap the upside.