Nordson Corp. (NDSN) fell sharply Tuesday as the company reported a top-line and bottom-line miss when they reported their latest quarterly results.
Let's check the charts and indicators.
In the daily bar chart of NDSN, below, I can see that the shares gapped lower Tuesday and have continued to decline, breaking below the 50-day and the 200-day moving average lines. The On-Balance-Volume (OBV) line has moved largely sideways the past four months and has diverged from the price action.
The Moving Average Convergence Divergence (MACD) oscillator made a high back in August and a lower high in December despite prices making higher highs. Another bearish divergence.
In the weekly Japanese candlestick chart of NDSN, below, you need to use your imagination to visualize Tuesday's decline. Prices are breaking the 40-week moving average line. The weekly OBV line has been moving sideways the past year and has not confirmed the price gains.
The MACD oscillator is above the zero line but it has been narrowing for weeks and could quickly cross to the downside for a take profit sell signal.
In this daily Point and Figure chart of NDSN, below, I can see Tuesday's decline with no price gap. Here the software projects a potential downside price target in the $191 area.
In this weekly Point and Figure chart of NDSN, below, I can see a price target in the $189 area.
Bottom-line strategy: NDSN is under selling pressure and could test/break the September/October lows. Avoid the long side of NDSN.
