Fortune Brands Home & Security (FBHS) has been in an irregular-looking (as opposed to nice and smooth) uptrend the past 12 months, but it looks like a weakening momentum picture suggests a pullback and maybe more in the weeks ahead.
In this daily chart of FBHS, above, we can see that prices have rallied above the rising 50- and 200-day moving averages. The On-Balance-Volume (OBV) line is rising and confirms the price strength. But momentum leads prices, and the 12-day momentum study in the lower panel shows a bearish divergence between stronger prices in February, March and April and weaker momentum readings. This bearish divergence can be foreshadowing further price weakness in the days and weeks ahead.
In this three-year weekly chart of FBHS, above, we can see that prices are above the rising 40-week moving average line. The OBV line is positive, but while the moving average convergence divergence (MACD) oscillator is above the zero line it looks like it could narrow toward an eventual sell signal. The charts are not screaming "sell," but there are issues with the strength of the advance and a 5% to 10% correction could be the result in the next few weeks.