Logitech International S.A. (LOGI) continues to correct but that may bring it into a buying zone soon.
We looked at LOGI on July 22 after Jim Cramer interviewed the president and CEO on Mad Money and wrote that, "LOGI had made an impressive rally from the March lows. We have reached an upside price target and momentum is slowing on the daily chart. Traders should consider locking in some profits here and raising stop protection on the balance to a close below $66. LOGI is not showing us a major top pattern so we may want to consider rebuying LOGI in a few weeks."
Let's check out some updated charts.
In the daily bar chart of LOGI, below, we can see that the shares did not make much upside price progress after our July 22 review. Prices have moved sharply lower in recent sessions and just closed below the rising 50-day moving average line.
The On-Balance-Volume (OBV) line peaked in late July and has turned lower telling us that sellers of LOGI have become more aggressive. The Moving Average Convergence Divergence (MACD) oscillator has been weakening since late July-early August and tells us that traders should be more defensive as the trend strength has been waning.
In this weekly bar chart of LOGI, below, we can see that prices made a large outside week and lower close. Futures traders will take this as a sign of a reversal. Prices are still well above the rising 40-week moving average line.
The weekly OBV line shows a peak in July and a number of weeks of weakness. The MACD oscillator has been narrowing in recent weeks and is not far from a crossover and a take profits sell signal.