In this daily chart of WBC, above, we can see prices have been weakening since late April. WBC is below its declining 200-day moving average line. The On-Balance-Volume (OBV) has moved up and down with the price action and is not giving us a reason right now to fight the trend of the past few months. We see no bullish divergences with momentum to suggest a quick or even a slow turnaround.
In this four-year weekly chart, above, we have some interesting technical developments. Prices are below the declining 40-week moving average line. The weekly OBV line has been down the past two months, suggesting that the selling has become more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line with a bearish configuration. Now look across the $85 level on this chart. Notice how prices have rallied off that level a number of times? The last rally from that level did not go to a new high but only a lower high. If prices break this key chart point on a weekly basis, it will mean we have a lower low and hence a downtrend. Traders should be prepared to take appropriate action.