At the beginning of March we thought highly of Ross Stores (ROST) and looked for it to keep climbing, but it has weakened this month and a fresh chart interpretation is needed.
In this daily chart of ROST, above, we can see how prices shifted from up to sideways in April as the stock broke below the rising 50-day average line. Over the next several weeks a number of the rallies to the underside of the average line failed. As we entered the month of May the 50-day turned down and prices skidded to break below the longer-term 200-day average line.
The On-Balance-Volume (OBV) line peaked in early April and turned lower, signaling that sellers had become more aggressive. In the bottom panel of this chart is the 12-day momentum study and there are no bullish divergences from the momentum study vs. prices.
This longer-term weekly chart of ROST, above, shows the price erosion in recent weeks. ROST has closed below the 40-week moving average line. It looks like the 40-week line is turning flat. The OBV line looks like it has stalled out and is inching lower this month.
The bottom panel shows the Moving Average Convergence Divergence (MACD) oscillator, which is crossing to a new sell signal at a lower high than the early 2015 high. A close below $50 and then $46 in the weeks ahead will put the bear in control.