Brunswick Corp. (BC) could suffer a small decline in the weeks ahead before renewed strength is seen. Let's get on a pair of swimming trunks and grab our fishing gear and check out the charts and indicators.
In this daily bar chart of BC, below, we can see that rallies into the $68-$70 area have failed in June and July. Prices are below the cresting 50-day moving average line and only a few dollars above the rising 200-day line. The daily On-Balance-Volume (OBV) line has peaked over the past two months and is now pointed lower. A weak OBV line happens when sellers are more aggressive. The daily Moving Average Convergence Divergence (MACD) oscillator is in a take profits sell mode from mid-June and is close to crossing below the zero line for an outright sell signal.
This weekly bar chart of BC, below, also shows weakness. Prices are above the rising 40-week moving average line but the weekly OBV line has turned lower and the MACD oscillator is about to cross to a take profits sell signal on this time frame.
In this Point and Figure chart of BC, below, we can see a bullish price target of $71.76 but a decline to $61.64 will probably turn this chart
Bottom line: BC looks toppy and poised for further weakness. Traders and investors should stand aside and await a better buying opportunity in the weeks ahead.