Consulting and strategy firm Accenture (ACN) reported an EPS beat and a revenue beat Thursday morning. The stock was trading higher in early morning activity, but let's check the various trends of the charts and indicators.
In this daily bar chart of ACN, below, I see that prices have been in a downward path since early April. Prices have been making lower highs and lower lows - the simple definition of a downtrend. ACN trades below the declining 50-day moving average line and below the declining 200-day moving average line.
The daily On-Balance-Volume (OBV) line, a simple math-driven volume indicator, has been in a downward trend the past twelve months. A weak OBV line tells me that sellers of ACN have been more aggressive than buyers.
The trend-following Moving Average Convergence Divergence (MACD) oscillator is below the zero line but poised for a cover shorts buy signal (a buy signal in a downtrend).
In this weekly Japanese candlestick chart of ACN, below, I can see that prices are in a longer-term decline. ACN trades below the negatively sloped 40-week moving average line so the math tells me the trend is down. The weekly OBV line shows weakness from early 2022. The MACD oscillator is bearish.
The most recent weekly candle shows an upper shadow as traders rejected the highs. The prior candle shows a lower shadow which suggests traders are rejecting the lows. Let's see who gets the upper hand this week.
In this daily Point and Figure chart of ACN, below, I can see that the software is projecting a potential downside price target in the $231 area. A trade at $274.19 is needed to turn this chart bullish.
In this weekly Point and Figure chart of ACN, below, I see a downside price target in the $191 area.
Bottom line strategy: Shares of ACN look to rally Thursday morning but the dominant trend has been down. The OBV line has not shown us a shift towards aggressive buying. ACN may be making a low but a durable bottom is not visible yet.
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