Paramount Global (PARA) was trading sharply lower Thursday as traders react to the company reporting an earnings and revenue miss and a cut to the dividend. Let's check out the charts of this entertainment conglomerate.
In this daily bar chart of PARA, below, I can see that prices have gapped lower on heavy volume. PARA gapped below the 50-day moving average line and below the 200-day moving average line. The lows of November and December are not all that far away now.
The daily On-Balance-Volume (OBV) line is starting to turn lower after a three-month sideways move. The Moving Average Convergence Divergence (MACD) oscillator is slightly above the zero line and is likely to cross below it soon.
In this weekly Japanese candlestick chart of PARA, below, I see a "distorted" view because of the price action over the past three years. The big amplitude of the price action distorts things a bit. Prices are below the 40-week moving average line. The weekly OBV line is likely to turn lower as is the MACD oscillator.
In this daily Point and Figure chart of PARA, below, I can see a price target of $14.
In this weekly Point and Figure chart of PARA, below, I can see an upside price target in the $43 area but a trade at $26 is needed to refresh the uptrend.
Bottom line strategy: It's simple - avoid the long side of PARA. Further declines are anticipated.
