Thursday will be the big earnings day of this week Jim Cramer told Mad Money viewers Friday night. That's when we hear from several Cramer favorites, including Accenture (ACN) , Jabil Circuit (JBL) , CarMax (KMX) and Darden Restaurants (DRI) .
Let's take a look at the charts of Accenture, the professional services' company.
In the daily bar chart of ACN, below, we can see that the shares have rolled over this month for a test of the 50-day moving average line. Trading volume has picked up recently as prices have fallen, telling us that there is a little urgency to sell. The On-Balance-Volume (OBV) line shows a decline this month, which indicates to us that sellers have become more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator shows a peak in June and a decline that has brought this indicator close to the zero line.
In the weekly bar chart of ACN, below, the picture has not begun to weaken all that much. Prices are above the rising 40-week moving average line. The weekly OBV line is still rising but it has not made a new high to confirm the new price highs.
The MACD oscillator shows some narrowing in recent weeks.
In this daily Point and Figure chart of ACN, below, we can see a potential downside price target in the $216-$215 area.
Bottom-line strategy: ACN made an impressive rally from its March lows and now it is correcting those gains. The Point and Figure chart suggests a correction to the $215 area is possible but prices could decline deeper and last longer than the charts currently suggest. A decline lasting into the year-end is possible.
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