EV charging firm ChargePoint Holdings (CHPT) is losing some "amps" on the charts. Let's check.
In this daily bar chart of the Action Alerts PLUS holding below, we can see that CHPT shares have struggled since making a small double top in August and September. CHPT has fallen back below the declining 50-day and 200-day moving average lines.
The daily On-Balance-Volume (OBV) line has done two interesting things -- first it did not go up much from the May low to the August high and second, it has since declined, telling us that sellers of CHPT have become more aggressive than buyers.
The Moving Average Convergence Divergence (MACD) oscillator is below the zero line in bearish territory.
In the weekly Japanese candlestick chart of CHPT, below, we see an interesting divergence. Prices have trended lower from around $50 back in late 2020 and early 2021. The shares made a low in May around $10 but the subsequent recovery failed around $20 and CHPT has since drifted lower. Prices are below the flat 40-week moving average line.
The weekly OBV line shows an advance from a low in May which is much stronger than the price recovery. This rise in the OBV line has made a bullish divergence the past three months when compared to the price action.
The trend-following MACD oscillator failed at the zero line and is pointed lower.
In this daily Point and Figure chart of CHPT, below, we can see a potential downside price target in the $8 area.
In this second Point and Figure chart of CHPT, below, we see the same $8 price objective as the daily chart above.
Bottom-line strategy: In the long run I expect that charging stations will be a big and profitable business. In the short run I fear that the stock price of CHPT is going to retest the 2022 lows.
(CHPT is a holding in the Action Alerts PLUS member club . Want to be alerted before AAP buys or sells CHPT? Learn more now. )