Zions Bancorp (ZION) was recently downgraded by TheStreet's Quant Ratings service, so it warrants a closer look.
In this daily chart of ZION, above, we can see that last month the stock moved lower, breaking the uptrend of March, April and May. Prices broke down below the 50-day and 200-day moving averages right after a bullish golden cross. A bearish divergence between higher prices in April and then June vs. weaker momentum readings may have been the tip off. What doesn't seem right is the heavier volume of trading in the latter part of June as ZION moved lower, but the On-Balance-Volume (OBV) line held steady keeping the general rise from the January low intact.
In this weekly chart of ZION, above, we can see that prices are below the declining 40-week moving average line. The weekly OBV line has turned down sharply in recent weeks, unlike the daily chart. The Moving Average Convergence Divergence (MACD) oscillator looks like it has rolled over to a new sell signal.
Bottom line -- there are so many securities out there that we can pick and choose the ones with the best fundamentals and the best chart pictures. ZION is in limbo for me, not weak enough to short, but also not strong enough to suggest probing the long side.