Terex Corp. (TEX) has recently broken down from a top formation and further declines are anticipated. Let's review the latest charts and indicators to get a handle on how far down this decline could carry.
In the daily bar chart of TEX, below, we can see a pattern of lower highs from January to July to September and lower lows from April to October -- the simple definition of a downtrend. Prices are below the 50-day and the 200-day moving average lines and both indicators have bearish or negative slopes.
The daily On-Balance-Volume (OBV) line shows a peak back in January and roughly follows the price action lower. This overall weakness in the OBV line suggests that sellers of TEX have been more aggressive all year.
In the lower panel is the Moving Average Convergence Divergence (MACD) oscillator, which moved below the zero line earlier this month for another outright sell signal.
In the weekly bar chart of TEX, below, we can see that prices are below the declining 40-week moving average line. Chart support around $35 has been broken and next support might develop around $30 or $25.
The weekly OBV line shows a peak in January and another peak in September. The weekly MACD oscillator turned bearish again in early August and is still in a bearish setup or configuration.
In this Point and Figure chart of TEX, below, we can see that a trade in October to $35 was a breakdown and yields a downside price target of $29 for starters.
Bottom-line strategy: The sideways price action from March to now in the $36-$45 area yields a downside price target of around $27. No need for buyers to get involved yet.