Wednesday night in his second "Executive Decision" segment of his Mad Money show, Jim Cramer sat down with Bryan Jordan, chairman, president and CEO of First Horizon National (FHN) . This regional bank was a good situation according to Cramer. Do the charts and indicators concur?
In the daily bar chart of FHN, below, we can see that, unfortunately, the stock has been in a downtrend. Prices have been making lows and lower highs since December. Prices are below the declining/bearish 50-day moving average line and in July the slope of the 200-day moving average turned down.
The On-Balance-Volume (OBV) peaked in May and tells us that sellers of FHN have become more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line in a sell setup.
In this weekly bar chart of FHN, below, we can see that prices made a large double-top-like pattern from late 2016. Prices are below the low of the pattern and below the declining 40-week moving average line.
The weekly OBV line has been weak the past two months. The weekly MACD oscillator joins the daily signal with its position below the zero line.
In this long-term Point and Figure chart of FHN, below, we can see a downside price target of $13.50.
Bottom-line strategy: FHN may have a good story but the charts are bearish. I would pass on this stock.