Consumer products manufacturer Church & Dwight ( CHD) gapped lower Friday as the company's sales and guidance were disappointing to investors.
Let's check out the charts and see what's going on there.
In this daily bar chart of CHD, below, we can see that the shares made a sharp two-day reversal with a strong close on Thursday followed by a gap lower and weak close on Friday. Prices tested the 200-day line on Thursday and closed below the declining 50-day line on Friday.
The daily On-Balance-Volume (OBV) line turned lower way back in January and appears to be rolling over in July. The Moving Average Convergence Divergence (MACD) oscillator crossed to the downside in July and is pointed down towards the zero line and a possible sell signal.
In this weekly Japanese candlestick chart of CHD, below, we can see a number of upper shadows around the underside of the 40-week moving average line. This tells us that traders have been rejecting the highs in recent weeks.
The weekly OBV line shows an uneven decline so far this year. The MACD oscillator is in a bearish alignment below the zero line.
In this daily Point and Figure chart of CHD, below, we can see a potential downside price target in the $80 area.
In this weekly Point and Figure chart of CHD, below, we can see a longer-term upside price target in the $128 area. A trade at $97.41 or higher is needed to refresh the uptrend.
Bottom-line strategy: There are a number of Curch & Dwight products I will continue to buy but the stock chart is not a good purchase right now.
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