When we reviewed the charts of Azek Inc. (AZEK) on June 18 we wrote that,"The charts of AZEK are pointed a little bit lower. Further price weakness may not be a buying opportunity as we need to see how traders react. Will the OBV line start to turn upward? Let's wait and watch a bit longer."
We return to the charts of AZEK today because TheStreet's Quant Ratings service just started coverage with a "hold" recommendation.
Let's look at the charts again.
In the updated daily bar chart of AZEK, below, we can see that the shares have continued lower into July but there is some improvement below the surface. Yes, prices are below the declining 50-day moving average line and below the 200-day line.
The On-Balance-Volume (OBV) line made a low in June but has not made a new low in July even though prices have declined further -- a small bullish divergence. The 12-day price momentum study made a low in June and a higher low in July for another bullish divergence.