Action Alerts PLUS holding Tyson had been in the sweet spot, according to Cramer, but is now suffering from plant closures. The company reported their numbers this Monday morning, saying lower levels of productivity and higher costs of production it has experienced recently are likely to continue in the short term until the effects of Covid-19 diminish.
Let's check out the charts.
In the daily bar chart of TSN, below, we can see the price activity through Friday but we know prices are trading lower Monday morning. TSN has been trading sideways for much of April and could not break out over the late March high. The slopes of both the 50-day moving average line and the 200-day moving average line are negative.
The daily On-Balance-Volume (OBV) line has hardly improved from March suggesting that buyers of TSN are not all that aggressive in buying more shares. The Moving Average Convergence Divergence (MACD) oscillator has climbed back to the zero line but price weakness Monday is likely to cut short a bullish signal.
In the weekly bar chart of TSN, below, we can see that prices were more than cut in half this year and broke the lows of 2018. The 40-week moving average line has a negative slope and the weekly OBV line has been in a decline from last May.
The weekly MACD oscillator is below the zero line and probably several weeks away from a cover shorts signal if prices can rally.