Ashland (ASH) has lost ground for much of the past 12 months, as seen in the chart below. The stock was upgraded by TheStreet Ratings quantitative service, but the recent price recovery lacks volume.
We notice two big "legs" lower in this daily chart of ASH, above, with a sideways-to-higher correction in the middle. The lower lows in December, January and February for ASH can be matched against higher lows on the momentum study. This bullish divergence foreshadowed the February and March recovery.
Prices have rallied above the 50-day moving average, but the slope of both the 50- and 200-day averages is negative. Our indicators are "balanced," so here is the tie breaker -- volume. When prices increased recently, the On-Balance-Volume (OBV) remained flat, telling us that buyers were not becoming aggressive. ASH is likely to drift back down to the $95 to $90 area unless buyers kick it up a notch.
This longer-term chart of ASH, above, has bullish and bearish signals. Prices are still in a downtrend on this time frame, with ASH below the declining 40-week moving average. The OBV line peaked in the first half of 2015 and doesn't seem to be leading prices to the upside. The lower lows in price on this weekly chart are contrasted with the higher lows from the momentum study for a bullish divergence. Bottom line, ASH is still pointed down and a retest of the $95 to $90 area is what we are anticipating in the near term.