Air Products & Chemicals (APD) has been stalled in a sideways trading range since late October. During this time some of our favorite technical indicators have weakened. Let's look closer at the charts and indicators to see if APD is vulnerable to a correction.
In this daily bar chart of APD, below, we can see some "choppy" trading in the $160-$165 area the past six to seven weeks. The daily On-Balance-Volume (OBV) line has been inching lower since late October suggesting that sellers of APD have been a little more aggressive than buyers. The trend-following Moving Average Convergence Divergence (MACD) oscillator has been in a take profits sell mode since the middle of November.
In this weekly bar chart of APD, below, we see some more technical clues that make us cautious. APD is still above the rising 40-week moving average line but the weekly OBV line is rolling over and the MACD oscillator is narrowing towards a possible take profits sell signal.
In this Point and Figure chart of APD, below, we can see the steady pattern of higher lows and higher highs (i.e. an uptrend) from early 2016. Prices are pointed up with a possible $173 price target but the rally is extended and probably vulnerable to a correction of some sort.
Bottom line -- with some softness in our indicators I would protect profits if you are long. APD could pull back and fill the gap from late October or we could see a correction to the $154 area. Plan accordingly.