Aptiv Plc ( APTV) , formerly Delphi Automotive, serves the automotive industry. The brokerage firm Piper Sandler downgraded the stock to underweight "due to skepticism around its software business". Let's check out the charts to see how shares may trade from here.
In this daily bar chart of APTV, below, we can see that prices broke an uptrend (not drawn) and the 200-day moving average line in January. Prices tumbled lower and did not bounce much until early March and from the round number of $100. Trading volume was heavy and price rebounded to the underside of the bearish 50-day moving average line.
APTV failed to break above the 50-day line and prices have turned lower again. The slope of the slower-to-react 200-day average is bearish.
The On-Balance-Volume (OBV) line has been in a decline from early November as traders became more aggressive sellers. The Moving Average Convergence Divergence (MACD) is bearish.
In this weekly Japanese candlestick chart of APTV, below, we can see some interesting clues. Prices are trading below the declining 40-week moving average line. The recent upper shadow in the $120-$130 gives us a big message that traders are rejecting those prices.
The OBV line has been chopping higher the past year. The MACD oscillator is bearish.
In this daily Point and Figure chart of APTV, below, we can see a potential downside price target of $86.
In this weekly Point and Figure chart of APTV, below, a price target of $86 is also shown.
Bottom line strategy: It looks like APTV can retest its March low and perhaps make a lower low. Stand aside for now as better prices will likely be seen in the weeks ahead.
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We got a broad rally on Friday after a week of narrow action -- but once the debt ceiling news hits, the market will go on to the next stage of action.
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