Beauty products firm Estee Lauder (EL) is rallying Friday but I am not confident that the selloff is over just yet. Let's check and see if there is a "foundation" for a rally.
In this daily bar chart of EL, below, I can see that prices have tumbled lower since early February and lost nearly half of their "value". EL trades below the declining 50-day moving average line and below the bearish 200-day line.
The daily On-Balance-Volume (OBV) line has been weak since January and tells me that sellers of EL have been more aggressive than buyers. The Moving Average Convergence Divergence (MACD) oscillator is still below the zero line but shows improvement from May to August.