We recently looked at five of 10 companies with good dividends and great charts, at the request of a subscriber. Here are the five other companies:
Realty Income Corporation ( O) is the sixth stock that I culled out with a good dividend and a good looking stock chart. In this daily bar chart of O, below, I can see that prices made a "V" bottom in October. Prices have recovered and now trade back above the rising 50-day moving average line. O is above the 200-day line but it has not yet turned positive. The OBV line has been leading prices on the upside and tells me that buyers of O are being more aggressive than sellers. The MACD oscillator is bullish.
The next chart on our list of 10 is Crown Castle ( CCI) . In this chart of CCI, below, I see a turnaround picture. Trading volume has been very heavy since October and suggests we are seeing a shift from weak hands to stronger hands. The OBV line has improved and prices are above the rising 50-day moving average line but still below the declining 200-day line. The MACD oscillator moved above the zero-line in January.
Simon Property Group ( SPG) was No. 8 on the list of 10. SPG (chart below) is off to the races. Prices made a lower low in October but the indicators made equal or higher lows - both the OBV line and the MACD oscillator have diverged from the price action. SPG is trading above the 50-day line and the bottoming 200-day line. A bullish golden cross buy signal is showing in December.
Next to the last is FirstEnergy Corp. ( FE) . In this daily bar chart of FE, below, I see a number of positive clues understanding that we may need more sideways price action. Prices just moved above the 50-day line after a recent test. FE is above the 200-day moving average line, which is still in a downtrend. The OBV line made a low in June and a higher low in November. The MACD oscillator is above the zero-line, just barely.
No. 10 and the last name on our list is Public Service Enterprise Group ( PEG) . In this daily bar chart of PEG, below, I can see that PEG made a low in October and a recovery rally. Prices are still below the declining 200-day moving average line and most times I would not recommend a chart like this. In this case the OBV line shows a rise from June and that is impressive. The MACD oscillator is above the zero-line.
Bottom-line strategy: I would wager that many investors are either/or. Either they are fundamentally oriented or they are technically oriented. There is no reason why investors shouldn't be combining approaches. This is just one way to hopefully improve your results.
