Worthington Industries, Inc. (WOR) made a sharp rally this month but a longer-term pattern of lower highs and lower lows is likely to dominate and continue in the months ahead.
In this daily bar chart of WOR, below, we can see lower highs in July and September and January and now in April. Lower lows were made in November and an equal low early this month. The 50-day average line has moved up and down with the price action so the longer-term 200-day line may reflect the dominate downtrend. There is chart resistance seen in the $47-$50 area.
The On-Balance-Volume (OBV) line is pointed up and suggests that buyers of WOR have been more aggressive. The daily Moving Average Convergence Divergence (MACD) oscillator just turned to the upside for a free long signal.
In this weekly bar chart of WOR, below, we can see that the 40-week line has been trending lower since the middle of 2017. The weekly OBV line has been trending lower while the MACD oscillator could cross to the upside soon.
In this Point and Figure chart of WOR, below, we can see a downside price target of $35.
Bottom line: I do not have a strong desire to short WOR, but traders should wait for a better trade location before trying the long side.
(See Jim Cramer's "Mad Money Recap" for more on WOR.)