C.H. Robinson Worldwide (CHRW) has been rolling over on the charts and its indicators have been weakening. Let's take a closer look -- maybe we have a short-sale candidate.
In this daily chart of CHRW, above, we can see at least four attempts to move to the upside during March through July. Every assault on the upside was rejected and now prices look like they will take the path of least resistance and turn down.
CHRW is trading below the declining 50-day simple moving average line and below the flat 200-day line. The daily On-Balance-Volume (OBV) line peaked in late May and tells us that sellers have been more aggressive for the past three months. The lower panel of this chart shows the 12-day momentum study and unfortunately for the bulls does not show any bullish divergences at this time.
In this three-year weekly chart of CHRW, above, we can see that prices are below the flat 40-week moving average line. Prices have been unable to make a sustained move above $76 for the past two years.
The weekly OBV line has been weakening for four months and is signaling a fair amount of liquidation (selling). The Moving Average Convergence Divergence (MACD) oscillator is in a sell mode and recently crossed below the zero line for an outright sell or go short signal.
Strategy: a daily close below $68 will weaken the chart of CHRW even further and would be a signal for aggressive traders to sell or go short, with a buy-stop above $71. An intermediate-term decline to the $62 level would be our first price objective, but a weekly close below $62 would open up CHRW to still further declines in the months ahead.