Stitch Fix (SFIX) is scheduled to report its latest quarterly figures after the close of trading Tuesday. The shares of this personal styling service have been in a decline the past year so let's check and see if investors are finding prices attractive.
In the daily bar chart of SFIX, below, we can see that the shares have made a significant decline the past 12 months. The shares trade below the declining 50-day and the bearish 200-day moving averages.
The On-Balance-Volume (OBV) line shows a decline into July and only limited improvement in the weeks since. The 12-day price momentum study has yet to show us a bullish divergence between the price movement and the indicator.
In the weekly Japanese candlestick chart of SFIX, below, we can see a dramatic upper shadow at the price peak in early 2021. Prices have been reduced to penny stock levels (under $5). The 40-week moving average line is bearish.
The weekly OBV line made a big decline into July. The 12-week momentum study is not supportive.
In this daily Point and Figure chart of SFIX, below, we can see a potential downside price target of $1.
Bottom-line strategy: I have no special knowledge of what SFIX could report to shareholders Tuesday evening but the charts are weak. Traders should avoid the long side of SFIX.
