• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing

Six Flags Entertainment: Don't Sit in the Front Car

Charts show a weakening short-term and longer-term picture.
By BRUCE KAMICH
Mar 09, 2017 | 09:59 AM EST
Stocks quotes in this article: SIX

We did not like the price action in Six Flags Entertainment (SIX) when we reviewed it recently and it has continued to act poorly. Let's review the latest charts and indicators to see how much more downside risk there may be in the weeks ahead.

Looking at this updated daily bar chart of SIX, below, we can see that in the past two weeks prices have failed at the underside of the 50-day moving average line. Also, the slope of the 50-day average has turned down. While the 200-day moving average line is still pointed up it looks like it will soon flatten. 

The On-Balance-Volume (OBV) line looks like it has rolled over in February, suggesting that buyers of SIX are no long being aggressive as they were in December and January. In the lower panel is the trend-following Moving Average Convergence Divergence (MACD) oscillator which peaked in November and has declined below the zero line for an outright sell signal.

In this three-year weekly chart of SIX, below, we can see an uptrend from late 2014 but the recent price action suggests that this trend may be ending. SIX is trading above the 40-week moving average line but the slope of the line is starting to flatten. Volume was heavy at the last low in August/September but the volume slowed in the subsequent advance. Technicians like to see volume increase in a rally. The weekly OBV line has rolled over at a lower level than earlier in 2016. A declining OBV line is a sign of more aggressive selling by investors. The MACD oscillator has just crossed to a liquidate longs signal on this weekly timeframe.

Bottom line: With a weakening short-term and longer-term picture I would look for SIX to decline to around the mid-$50s.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are restricted from trading individual securities.

TAGS: Investing | U.S. Equity | Entertainment | Stocks

More from Investing

Bright Cannabis Outlook Leads to Bigger Estimates for 2022

Debra Borchardt
Jan 25, 2021 5:15 PM EST

The fundamentals of the cannabis industry continue to improve.

The Indexes Hide the Rumbling Underneath

James "Rev Shark" DePorre
Jan 25, 2021 5:02 PM EST

As the market appeared ho-hum on the surface, much was shaking underneath and traders got a jolt.

Jim Cramer: This Is a Market of Stocks, Not a Stock Market

Jim Cramer
Jan 25, 2021 3:22 PM EST

With few exceptions, there isn't a stock that could bring down this market.

The Most Notable Action Right Now Is Some Huge Short Squeezes

James "Rev Shark" DePorre
Jan 25, 2021 12:26 PM EST

Increased volatility is a warning sign, but it's very likely that we will see quite a bit of it before the big turn finally does occur.

AMC Is a Real Showstopper

Timothy Collins
Jan 25, 2021 11:50 AM EST

Let's look at how to play the frothy action on AMC Entertainment holdings.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 09:52 AM EST GARY BERMAN

    INDU/DIA 20 DMA

    Fibocall: The DIA has the 20 DMA @ 307.81 and w...
  • 08:04 AM EST GARY BERMAN

    Monday Morning Fibocall for 1/25/2021

    SPX (Long-Term View) The 1/21/21 NEW high @ 3861...
  • 11:01 AM EST JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    I discuss price targets in my Saturday column.
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2021 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login