Eversource Energy (ES) is losing power on the charts after giving us several sell signals over the past two months. Further declines are likely in the weeks ahead.
In this daily chart of ES, above, we can see how prices closed below the 50-day moving average line in early August and the slope of this shorter-term average line turned negative around mid-August. ES closed below the rising 200-day moving average in late August and a bounce to the underside of the average line failed last week. The On-Balance-Volume (OBV) has remained steady even with a volume spike in August. The Moving Average Convergence Divergence (MACD) oscillator has been bearish since early July.
In this three-year weekly chart of ES, above, we can see prices have closed below the rising 40-week moving average line the past couple of weeks. The OBV line on this time frame is edging lower and tells us that sellers of ES have been more aggressive in the past six weeks or so. The MACD oscillator on this timeframe is bearish and pointed down to the zero line for an outright sell signal. I would be prepared for a decline to around $49 on ES in the weeks ahead.