Dick's Sporting Goods (DKS) was pressured in early trading Wednesday on the company's forecast for weak sales numbers for 2022. The shares opened sharply lower Wednesday making a new 52-week low, but now DKS is trading higher on the day.
Let's check out the charts and indicators keeping in mind one of the oldest sayings on Wall Street: "Buy the rumor and sell the news."
In the daily bar chart of DKS, below, we can see that the shares have cascaded lower from early September to late May. Prices have been more than cut in half and that can be a price adjustment that attracts long-term investors. DKS is trading below the declining 50-day moving average line and is getting extended below the declining 200-day moving average line.
The trading volume has increased in recent days. The On-Balance-Volume (OBV) line has moved sideways the past year despite the decline in price. The slow stochastic indicator is coming back from oversold readings.