LendingTree (TREE) was downgraded by TheStreet's Quant Ratings service and it has a weakening chart picture. Sounds like two strikes. But what inning is it?
Looking at this daily chart of TREE, above, we can see a top pattern in the August to November period. TREE sold off from this top to a February low. Prices rebounded to the upside, but the On-Balance-Volume (OBV) line has had a poor response on the upside suggesting that buyers were not aggressively behind the move. The OBV line is pointed down again. Prices moved up in March and April to a higher high, but the momentum study made a lower high, giving us a bearish divergence. This month prices fell back below the 50-day and 200-day averages. The short-term picture is not in good shape. What about the longer-term view?
The top pattern on TREE is probably easier to see on this weekly chart, above. Prices are below the 40-week moving average line. The OBV line has turned down again. The Moving Average Convergence Divergence (MACD) oscillator is crossing below the zero line for a sell signal. There is some chart support around $60 for TREE, but if support gives way the next chart point to consider is the $45 area.