Pier I Imports (PIR) has been in a downtrend since the middle of 2013. We see no technical signs of a bottom as prices are set to test critical support.
In this daily chart of PIR, above, we can see that PIR has nearly been cut in half in the past five months. Prices are still below the declining 50-day moving average line and the declining 200-day line. The On-Balance-Volume (OBV) line has been in a downtrend the entire time, telling us that sellers have been more aggressive for months.
There are no bullish divergences between the recent new low in price and the momentum indicator. In January 2016 PIR held the $4.00 to $3.76 area before it bounced for two months. Prices are retesting this area and with a weak technical picture, we anticipate that this prior support could well be broken.
This three-year weekly chart of PIR, above, tells you to never ever fight the trend. Things may look cheap or undervalued but they can always get cheaper and more undervalued. PIR is below its declining 40-week moving average line. The OBV line on this weekly timeframe has been declining for three years and tells you that sellers have and continue to dominate. The trend following MACD oscillator is below zero and bearish. Don't fight the tape as PIR looks like it will make another leg lower.