Jim Cramer finished up his Mad Money game plan Friday for his viewers mentioning another earnings report due out this week. On Friday he noted we'll get a read on local economies from First Horizon National (FHN) .
Let's check out the charts of FHN.
In the daily bar chart of FHN, below, we can see that the shares made a strong rally from late September but June saw prices tumble lower. FHN closed below the cresting 50-day moving average line and kept falling. Prices are still above the rising 200-day moving average line which currently intersects around $15 -- not all that far away.
The On-Balance-Volume (OBV) line has been stalled since March. The Moving Average Convergence Divergence (MACD) oscillator is well below the zero line in bearish or sell territory.
In the weekly Japanese candlestick chart of FHN, below, we see a challenging setup. Prices have made a top reversal pattern in May with several doji or spinning tops before a bearish candle at the beginning of June for confirmation. The slope of the 40-week moving average line is still positive but it intersects at $15.50 or so and could be tested soon.
The weekly OBV line has rolled over telling us that sellers of FHN are now more aggressive. The MACD oscillator has crossed to the downside for a take profits sell signal.
In this daily Point and Figure chart of FHN, below, we can see a possible downside price target of $14.70. If this target was reached it would mean FHN is testing the 200-day and the 40-week moving average lines.
Bottom-line strategy: Ahead of its earnings announcement on Friday, FHN's charts look weak and suggest the risk of further declines. I would avoid the long side of FHN for now.
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