• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing

Moody's Has the Blues

Let's review the charts and indicators.
By BRUCE KAMICH
May 02, 2022 | 12:00 PM EDT
Stocks quotes in this article: MCO

Moody's Corp ( MCO) cut their guidance and the 2022 year, and prices quickly reacted with a gap lower opening. The rating company reported earnings that were inline with estimates and beat on revenue. Let's check out the charts and indicators.  
 
In this daily bar chart of MCO, below, we can see that prices gapped lower and sank sharply before some early intraday recovery. MCO broke the March low. Prices are below the declining 50-day moving average line and the declining 200-day line.
 
The On-Balance-Volume (OBV) line declined into late January and then bounced to early April. The OBV line shows some weakness again in the past four weeks. The Moving Average Convergence Divergence (MACD) oscillator recently moved below the zero line for a new sell signal.  
 
 
In this weekly Japanese candlestick chart of MCO, below, we do not have today's data points plotted. Prices are trading below the declining 40-week moving average line. Prices are trading below the March low but we have to use our imagination. The $280-$260 area may provide some support but in this weak broad market environment I would not count on support holding.
 
The weekly OBV line is pointed lower and the MACD oscillator is bearish. 
 
 
In this daily Point and Figure chart of MCO, below, we can see that prices reached and exceeded a downside price target of $296. Point and Figure charts do not show price gaps by the way. The custom is to fill in the X's or O's as if prices had actually traded there. 
 
 
 
In this weekly Point and Figure chart of MCO, below, we can see a potential downside price target in the $229 area. 
 
 
Bottom line strategy: MCO could rebound temporarily but the downtrend is likely to continue. Avoid the long side of MCO. 
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Earnings | Investing | Stocks | Technical Analysis | Trading | Financial Services

More from Investing

How To Adjust Your Trading Style as Market Conditions Change

James "Rev Shark" DePorre
Mar 25, 2023 10:00 AM EDT

There is no single approach to the stock market that is inherently superior over the long run.

The Chasing Slows on Wall Street

James "Rev Shark" DePorre
Mar 24, 2023 4:34 PM EDT

After Deutsche Bank shakes up investors, market cools a bit, which might be a healthy development.

Stay Away From These Types of Stocks, They're Radioactive

Jim Collins
Mar 24, 2023 2:35 PM EDT

Here's what you're better off buying. I certainly have.

GE Looks Poised for a Pullback: How to Trade It Now

Bruce Kamich
Mar 24, 2023 1:45 PM EDT

The shares stopped short of my price targets.

See SPOT Run ... Down

Bruce Kamich
Mar 24, 2023 1:23 PM EDT

Spotify looks like it is poised for a downside price correction, according to the charts.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 01:56 PM EDT PETER TCHIR

    Very Cautious

    I am very cautious here. I don't like how the c...
  • 08:58 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    How to Adjust Your Trading Style as Market Conditi...
  • 05:00 PM EDT CHRIS VERSACE

    AAP Podcast on the Fed Decision!

    Listen here!
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login