On the flip side of earnings, we have Perrigo (PRGO), whose revenues missed forecasts in the third quarter, although its EPS beat.
The stock spent the last two days breaking down from a bearish flag and then pushing through the September low.
The moving average convergence divergence (MACD) is reversing bearish again here, after a bullish crossover within the bear price flag.
The CCI and RSI are both heading back into extreme oversold territory, which lasted for several very ugly trading sessions just one month ago.
The one positive here is they have yet to reach new lows, although we are seeing new lows on the Force Index.
Overall, buying PRGO here is simply trying to catch a falling knife. While we are getting oversold, we'd be guessing at the bottom without some signs of life in the price action.
September saw a $35 price drop, so another $25 off of $155 is very possible here. It will take more than a $5 or even $10 bounce to change the technical outlook, so don't be in a hurry to put this name on your bullish radar, no matter how badly you want to buy the dip.
