• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Industrials

Corning Looks Weak on the Charts, Further Declines Appear Possible

Let's do a bottom up review.
By BRUCE KAMICH
Jul 02, 2018 | 09:53 AM EDT
Stocks quotes in this article: GLW

Corning Inc. (GLW) was reviewed in the beginning of the year where I was bullish, "Traders and investors who are long GLW should continue to hold and add to longs if they want. Risk a close below $31 now and look for gains into the $38-$40 area."

Prices stopped in their tracks at $35 by the middle of January and gapped lower to reach our sell stop in early February. GLW has remained on the defensive so a fresh look at the charts is needed. GLW declined into the $27-$26 area and subsequent bounces have been less than impressive and the indicators are not suggesting a rally in the weeks ahead.

Let's do a bottom up review.

In this daily bar chart of GLW, below, we can see that prices have crossed above and below the shorter 50-day moving average line a number of times. The slope of the line is flat and the 200-day moving average line is pointed down. 

The daily On-Balance-Volume (OBV) line has improved a little from late May but the pattern since January is basically neutral.

The trend-following Moving Average Convergence Divergence (MACD) oscillator has turned down to a take profits sell signal in the middle of June and is poised to move below the zero line for an outright sell signal.

In this weekly bar chart of GLW, below, we can see a bearish set-up with the indicators. Prices are below the declining 40-week moving average line. The $26 area looks like support but a break of that area could precipitate a deeper decline to around $22.

The weekly OBV line has been moving lower all year and suggests that sellers of GLW have been more aggressive.

The weekly MACD oscillator signaled a cover shorts buy signal at the end of May but the two moving averages that make up this indicator are quickly turning down again.

In this Point and Figure chart of GLW, below, we can see a distribution pattern with a potential downside price target of $18.

Bottom line: GLW may continue to hold above $26 and attempt an upside move at some point but the charts and indicators suggest that the downside is not over and that a deeper decline to $22 or even $18 is possible.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are restricted from trading individual securities.

TAGS: Investing | U.S. Equity | Industrials | Futures

More from Industrials

This Deep Value Portfolio Managed to Hold Its Own in 2019

Jonathan Heller
Dec 13, 2019 11:00 AM EST

The 22 stocks in the Double Net Value Portfolio collectively outperformed the value components of the Russell 2000 and Russell Micro indices.

Sector Geography Lesson, Japan's Stimulus and Zooming In on Zuora: Market Recon

Stephen Guilfoyle
Dec 5, 2019 8:48 AM EST

Plus, the Saudis look to press their oil agenda while Europe prints some ugly economic data.

PPG Industries Can Rally Further Into 2020

Bruce Kamich
Dec 4, 2019 8:20 AM EST

PPG is looking forward to more electric vehicles, because EVs require two to four times as many coatings and adhesives as traditional vehicles.

These Two 'Contenders' Fight for the Dividend Aristocrat Title

Chris Versace
Nov 30, 2019 10:17 AM EST

NextEra Energy and Lincoln Electric Holdings both appear lined up to become Dividend Aristocrats soon -- here they duke it out for top choice.

The Issue With Deere Is Its Guidance

Timothy Collins
Nov 27, 2019 12:59 PM EST

I expect Deere to continue on its downward path.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 10:10 AM EST BOB LANG

    Banking a Big Winner in SRPT, Rolling Up

    Nov. 20 here on the CC, I mentioned buying some Ma...
  • 10:36 AM EST GARY BERMAN

    Fibocall: How High Can Crude Go?

    On crude: I am looking for higher, but please b...
  • 08:20 AM EST BOB LANG

    Webinar Time - Talkin' Calendars, Butterflys

    join me later today after the market close as we t...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2019 TheStreet, Inc., 14 Wall Street, 15th Fl, NY, NY 10005

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login