Perrigo Co. plc (PRGO) was downgraded to a sell today by TheStreet's Quant Ratings service. Let's see how the charts and indicators line up on this name. Regular readers of Kamich's Korner on Real Money know that combining investment techniques can help your performance.
In this daily bar chart of PRGO, below, we can see that prices have been in a downtrend since its peak in late January. Prices are below the declining 50-day moving average line as they have been since early March. The 200-day average line has turned flat and we can see a bearish death cross of the 50-day and 200-day lines in late April. The daily On-Balance-Volume (OBV) line peaked back in November and has been trending lower since, signaling that sellers of PRGO have been and are more aggressive. The Moving Average Convergence Divergence (MACD) oscillator has been in a bearish mode since February when it moved below the zero line.
In this weekly bar chart of PRGO, below, we can see a long decline for the share price. Prices recovered a bit last year but we can see that we are back below the 40-week moving average line. The weekly OBV line is pointed down again as is the MACD oscillator.
In this Point and Figure chart of PRGO, below, we can see that a downside price target of $73 has been reached but a trade at $71 will open the way to still further declines, in my opinion.
Bottom line: One, two... A downgrade to sell and bearish charts and indicators. Avoid the long side of PRGO.
