Household products company Church & Dwight (CHD) was upgraded to buy from hold at a sell-side firm but they lowered their price target to $85 per share from $90. Let's check on the condition of the charts and indicators.
In this daily bar chart of CHD, below, we can see that prices made a double top of sorts in the $105 area in January and April. Prices turned down hard from May. CHD trades below the bearish 50-day moving average line and below the weak 200-day line.
The daily On-Balance-Volume (OBV) line is weak but has yet to break below its May low. The Moving Average Convergence Divergence (MACD) oscillator is bearish.
In this weekly Japanese candlestick chart of CHD, below, we see a bearish picture. Prices are in a downward trend below the weak 40-week moving average line and there is no nearby chart support. The weekly OBV line is pointed lower and the MACD oscillator is bearish.
In this daily Point and Figure chart of CHD, below, we can see that prices reached and exceeded a downside price target in the $77 area.
In this weekly Point and Figure chart of CHD, below, we can see a downside price objective in the $54 area.
Bottom line strategy: I have no idea what the fundamental analyst sees in the data but the charts and indicators of CHD are still bearish. I would avoid the long side of the stock.
