VF Corp. (VFC) started 2016 on a positive note, but then it stalled. It looks like VFC will need more base building before another upside attempt is made.
In this daily chart of VFC, above, we can see that prices sold off into a January low, like many other stocks we have tracked this year. It rallied in early February, and made a higher high along with its higher low for the simple definition of an uptrend. Prices rallied over the 50-day Simple Moving Average line, and then it has zigged and zagged around it in recent weeks. Prices remain below the declining, 200-day average line. Looking at our other favorite indicators, like the On-Balance-Volume (OBV) line, it is not trending up or down. The Moving Average Convergence Divergence (MACD) oscillator is also neutral, and has been hugging the zero line.
When I look at this weekly chart of VFC, above, I see a stock that topped out from late 2014 through the first half of 2015. Since VFC broke below its 40-week moving average, the average has acted as resistance on rallies. Note how many times VFC has failed at the underside of the declining, 40-week line. The OBV line has been flat on this weekly time frame for the entire time -- this is odd, but it tells us that neither buyers nor sellers are being aggressive. In the lower panel we have the weekly momentum study, and it shows that momentum has been slowing, suggesting that VFC is likely to trade sideways or even lower in the weeks ahead.