Voya Financial (VOYA) shares have struggled the past seven months, creating what I believe is a triple top formation on the charts. Let's check out the charts of the retirement services and employee benefits company to see what's what.
In this daily bar chart of VOYA, below, I can see that prices made three clear rally attempts into the $76-$78 area -- one in February and another in April and again in July. Notice the heavier trading volume in February, March and April? This may have been when investors used the rally to liquidate (sell) shares. The On-Balance-Volume (OBV) line has been weak since April and tells me that sellers of VOYA have been more aggressive than buyers. The trend-following Moving Average Convergence Divergence (MACD) oscillator is bearish.
In this weekly Japanese candlestick chart of VOYA, below, I can see a potential accident waiting to happen. Prices are testing the rising 40-week moving average line. The weekly OBV line shows a very long downward path, suggesting major liquidation (selling). The MACD oscillator is still above the zero line but it has been correcting since February. I can see upper shadows at all three peaks I discussed above.
In this daily Point and Figure chart of VOYA, below, I can see that prices reached a price target. A trade at $68.77 is likely to start to weaken this picture.
In this weekly Point and Figure chart of VOYA, below, I see a similar picture as the daily chart above. Here a weekly trade at $68.77 should weaken things.
Bottom line strategy: The charts and indicators of VOYA suggest that the path of least resistance for this stock is going to be to the downside. Avoid the long side of VOYA.
