• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing

The Technical Rug Has Been Pulled Out of Mohawk Industries

Let's see how far down MHK could decline in the weeks ahead.
By BRUCE KAMICH
Oct 22, 2018 | 12:20 PM EDT
Stocks quotes in this article: MHK

Mohawk Industries (MHK) has been in a downtrend all year and there does not seem to be an end to the weakness. Let's review our usual suspects of charts and indicators to see how far down MHK could decline in the weeks ahead.

In this daily bar chart of MHK, below, we can see that prices have been nearly cut in half since February - a pretty powerful bear. Prices are below the declining 50-day moving average line and the declining 200-day line too. A bearish dead cross of these two indicators can be seen back in March.

The daily On-Balance-Volume (OBV) line has been weakening since January and has made new lows in September and October.

The Moving Average Convergence Divergence (MACD) oscillator has been below the zero line for much of the time since February and it is still in a bearish configuration.

In this weekly bar chart of MHK, below, we can see the price action back to 2009. Prices are below the declining 40-week moving average line and we can see tentative chart support in the $140-$120 area.

The weekly OBV line shows weakness in recent weeks following a prolonged rise. The weekly MACD oscillator has been in a bearish mode from early January.

In this Point and Figure chart of MHK, below, we can see the big decline so far this year. This chart still has a downside price target of $102.44.

Bottom line strategy: The decline in the price of MHK this year has been pretty relentless. Bounces have been limited and short-lived and that bearish pattern could well continue as we have to look way back to 2014 for any chart support. The $100 area is the next big Point and Figure price target. Buyers of MHK need to sit on their hands.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are restricted from trading individual securities.

TAGS: Investing

More from Investing

Bearish Bets: 3 Stocks You Really Should Consider Shorting This Week

Bob Lang
Aug 7, 2022 10:30 AM EDT

These recently downgraded names are displaying both quantitative and technical deterioration.

I'm Banking on a Play in B. Riley Financial

Bret Jensen
Aug 7, 2022 7:30 AM EDT

Let me show you a covered-call setup in this investment management and financial services company.

The Secret to Dealing With Fear of Missing Out

James "Rev Shark" DePorre
Aug 6, 2022 10:00 AM EDT

FOMO is one of the most powerful forces in the stock market. Here's how to handle it.

3 Undervalued Blue Chip Dividend Stocks for High Long-Term Returns

Bob Ciura
Aug 6, 2022 7:00 AM EDT

This diversified group of high-yielders also happen to be undervalued.

So Far, Investors Are Willing to Reach Higher for the Market

James "Rev Shark" DePorre
Aug 5, 2022 4:24 PM EDT

After the miserable earlier part of the year, many investors are growing concerned that the market is going to run away to the upside without them.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 09:24 AM EDT PETER TCHIR

    Jobs Report Reaction: Incredibly Strong, But Questions to Ask

    An incredibly strong July jobs report. Not only d...
  • 08:54 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    The Secret to Dealing With FOMO
  • 03:51 PM EDT REAL MONEY

    AMD Second-Quarter Earnings Live Blog

    Real Money's Eric Jhonsa covers 's second-quarte...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login