Fair Isaac (FICO) was rated a new fundamental "outperform" (buy) by a sell-side brokerage firm Wednesday with a $1,007 price target. Let's drill down into the charts and indicators of data analytic firm the to see if they are on the same page as the fundamentals.
In the daily bar chart of FICO, below, I see a bearish setup. Prices have been in a rising trend since October and FICO trades above the rising 50-day moving average line and above the rising 200-day moving average line. But moving averages are lagging indicators.
The trading volume histogram has been neutral instead of expanding and that is a problem for old-time chart readers like myself. The On-Balance-Volume (OBV) line plunged sharply in March and has not recovered.
The 12-day momentum study shows us a weakening pattern from July to August even though prices made higher highs. This is a small bearish divergence and needs to be monitored as it is a "heads up" that something may be changing.