Rexnord (RXN) , headquartered in Milwaukee, Wis., announced plans in October to move 300 jobs from its bearing plant in Indianapolis, Ind to Mexico.
President-elect Trump took action recently to help keep jobs in Indiana with Carrier Corp. We don't know if the new administration with help or tweet against RXN but it can't hurt to look at the charts and indicators. It's what we do.
In this one-year daily chart of RXN, above, we can see a pretty volatile sideways trading pattern since April. The swings were largely contained by $23 on the upside and $18 on the downside until a deeper slide in early November. Prices crisscrossed the 50-day and 200-day averages several times over the past eight months.
The daily On-Balance-Volume (OBV) line looks like it peaked at the end of April when prices peaked and then slowly declined. Recently, volume swelled and the OBV line moved straight down.
The Moving Average Convergence Divergence (MACD) oscillator crossed to a new liquidate longs sell signal. Let's look at the weekly chart before passing judgment.
On balance this weekly chart of RXN, above, has a bearish bias. Prices just closed below the rising 40-week average line. The weekly OBV line has been drifting lower for months and the weekly MACD oscillator is on the zero line.
Strategy: A close below $19 could produce further weakness and a close above $23 will turn the chart to the upside.