Consulting powerhouse Accenture plc ( ACN) reported mixed quarterly results this Thursday morning and the stock is just a few dimes away from a new 52-week low. Let's check out the charts and indicators.
In the daily bar chart of ACN, below, we can see how the shares have reversed direction from a sharp rally into a December top reversal. Prices tried to bottom in the May-July time period but here we are back down at the lows. Prices are below the declining 50-day moving average line and below the declining 200-day line.
The daily On-Balance-Volume (OBV) line is leading the way lower and has already made a new low. The weak OBV line tells us that sellers of ACN remain more aggressive than buyers. The Moving Average Convergence Divergence (MACD) oscillator is also bearish.
In the weekly Japanese candlestick chart of ACN, below, we see a weak picture. Prices broke a major uptrend and are now in a longer-term downtrend below the declining 40-week moving average line.
The weekly OBV line is very close to making a new low for the move lower. The MACD oscillator is bearish and turning down again. Oh, and no lower shadows to the rescue.
In this daily Point and Figure chart of ACN, below, we can see a downside price target of $231.
In this weekly Point and Figure chart of ACN, below, we can see a bullish price target but further price weakness should tell the software to change the target.
Bottom-line strategy: The consulting services offered by ACN may be needed more in a slowing economic environment but the charts of this company are pointed lower. Avoid the long side of ACN.
