Whirlpool Corp. (WHR) reported a double-digit decline in orders in its latest results. Their earnings and revenue numbers missed forecasts by fundamental analysts and the company also cut its guidance. A bad combination.
In our April 26 review of WHR we looked for further weakness. Let's check the charts again.
In the updated daily bar chart of WHR, below, we can see that the shares have nearly been cut in half since early January. Prices trade below the declining 50-day moving average line and below the bearish 200-day moving average line.
The On-Balance-Volume (OBV) line shows us a fresh decline from August. The Moving Average Convergence Divergence (MACD) oscillator is bearish.
In the weekly Japanese candlestick chart of WHR, below, we can see a bearish setup. Prices are in a longer-term decline and trade below the negatively sloped 40-week moving average line. There is no bottom reversal pending and no lower shadows to suggest that a low could be developing.
The weekly OBV line is pointed down as traders are more aggressive sellers of WHR. The MACD oscillator is in a longer-term bearish alignment below the zero line.
In this daily Point and Figure chart of WHR, below, we can see a potential downside price target in the $104 area.
In this second Point and Figure chart of WHR, below, we used weekly price data. Here a target in the $95 area is shown.
Bottom-line strategy: Shares of WHR have not yet hit bottom. Continue to avoid the long side of the stock but if you need a new appliance you should get it.
