This Is One Boardwalk You'll Want to Avoid

 | Aug 23, 2017 | 12:26 PM EDT
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Boardwalk Pipeline Partners   (BWP) broke to the downside recently from a $16-$19 trading range. Short-term BWP could bounce, but weekly sell signals suggest that prices could head still lower in the next couple of months.

Let's check the latest charts and indicators below.

In this daily bar chart of BWP, below, we can see a "rounding over" of prices from December to May. Prices broke to the downside in June and then rebounded half way back into the formation and failed. Prices turned lower in July with a bearish dead cross of the 50-day and 200-day moving averages. The slope of both of these indicators is now bearish. The daily On-Balance-Volume (OBV) line turned lower in early June and still shows that sellers of BWP have been more aggressive. In the lower panel is the trend-following Moving Average Convergence Divergence (MACD) oscillator which could narrow towards a cover shorts signal in the days ahead.

In this weekly bar chart of BWP, below, we can see how prices are below the moving average line and its slope is now bearish. The weekly OBV line turned lower in early July and the MACD oscillator on this time frame signaled an outright sell signal in July as it moved below the zero line.

In this Point and Figure chart of BWP, below, we can see the recent breakdown and a possible downside price target or objective of $11.50.

Bottom line -- BWP could bounce in the short-run but there could be further weakness until prices reach a low enough level to entice longer-term investors.

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