VF Corp. (VFC) was reviewed near the end of July when I wrote that "VFC is in an uptrend and likely to trend higher. Raise sell stops to $86 and look for $100 and then $137 as price targets." VFC moved higher into early August but has since stalled. Support was appearing around $90 the past two to three months but today's weak price action changes things. Let's take a fresh look at the charts and indicators.
In this updated daily bar chart of VFC, below, we can see how the slope of the 50-day moving average line has turned from up (bullish) in August and September to flat (neutral). The rising 200-day moving average intersects down around $83 but we can't count on that to generate support. At least not yet. The $85 area saw resistance in February and June so that area may act as support on the way back down. If VFC closes below $90 today it will put all the buyers of this stock since the middle of July at a loss. The daily On-Balance-Volume (OBV) line has been stalled since early August telling us that buyers did not use the sideways price action to buy aggressively. The Moving Average Convergence Divergence (MACD) oscillator is right on the zero line so a sell signal should be coming soon.
In this weekly bar chart of VFC, below, we can see some weakness developing. Prices are still above the rising 40-week moving average line. The weekly OBV line shows a small peak in September and the MACD oscillator on this time frame has crossed to the downside and a take profits sell signal.
In this Point and Figure chart of VFC, below, we can see that the recent trade to $89.07 was a small breakdown and opens the way to an $85.32 price target.
Bottom line strategy: when a stock starts to pull back you never really know how far down it will go. We can look at potential support areas and the 200-day moving average line but these are only potential guides. Sometimes they work and sometimes we are rudely surprised. For now I would be prepared for a move down into the $85-$80 area. We'll see how it goes.