McKim said that despite the weaker-than-expected results, business at Clean Harbors remains strong. His company is ready to respond to almost any event, even dangerous ones.
Let's check the latest charts of CLH.
In the daily bar chart of CLH, below, we can see how quickly prices declined last week. CLH dropped about $20 per share in a hurry. This kind of rapid chart damage can sometimes generate a rebound rally but can also make buyers hesitant about new positions. CLH is below the declining 50-day moving average line and below the cresting 200-day moving average line.
The daily On-Balance-Volume (OBV) line has turned lower to tell us that sellers of CLH have become more aggressive and the trend-following Moving Average Convergence Divergence (MACD) oscillator has crossed below the zero line for an outright sell signal.
In the weekly bar chart of CLH, below, we can see that prices made a sharp move lower last week to close below the rising 40-week moving average line. The weekly OBV line shows only a slight or early decline while the MACD oscillator continued to weaken.
In this Point and Figure chart of CLH, below, we can see that the software has counted the width of the distribution pattern and projected a potential downside price target in the $48 area.
Bottom-line strategy: CLH has declined sharply. Prices need to stabilize and stop declining and then rebase before renewed strength can be expected. Exercise patience if you want to be a buyer.