Beef, pork and chicken producer Tyson Foods ( TSN) reported disappointing earnings and revenue numbers Monday morning. The shares are lower in early trading activity and close to testing or breaking their December lows.
Let's check the freshness of the charts and indicators.
In the daily bar chart of TSN, below, I see a bearish picture. The shares are trading below the negatively sloped 200-day moving average line. TSN is below the 50-day line in pre-market activity.
The trading volume has been more active in the past three months but the On-Balance-Volume (OBV) line has not responded on the upside. The Moving Average Convergence Divergence (MACD) oscillator is only slightly above the zero line suggesting a lack of trend-strength.
In the weekly Japanese candlestick chart of TSN, below, I see a disappointing picture. The shares are trading below the declining 40-week moving average line.
The weekly OBV line is weak and the MACD oscillator has only managed a cover shorts buy signal.
In this daily Point and Figure chart of TSN, below, I can see an upside price target in the $80 area but a trade at $62.88 or lower is likely to turn the target to the downside.
In this weekly Point and Figure chart of TSN, below, I can see a higher price target in the $94 area but price weakness Monday should start to turn this chart negative.
Bottom-line strategy: Avoid the long side of TSN. New 52-week lows are possible.
