The share price of Unity Software ( U) has declined from $210 in November to just $30 in May -- a heart-stopping plunge that may have prompted one sell-side fundamental analyst to rate Unity a new "sell."
We rely on the the price action and our indicators for our guidance and have been cautious since our November 10 review and liquidated remaining longs with a $141 sell stop.
Let's check on U again. 
In the daily bar chart of U, below, we can see that the stock made a low in May on extremely heavy trading volume. Many times this kind of volume can mark an important low but U has failed to make much of a price recovery. The price of U is close to its 52-week low and weakness in the broader market is steering things lower and sending buyers into hiding.
The slope of the 50-day moving average line is negative as is the slope of the 200-day line. Prices are extended (oversold) below the 200-day line but that has not prompted much in the way of a price recovery.
The On-Balance-Volume (OBV) line has been weakening since November. The Moving Average Convergence Divergence (MACD) oscillator has been bearish since December.
In the weekly Japanese candlestick chart of U, below, we see a bearish picture. No bottom reversal pattern to point out. The 40-week line is bearish as is the OBV line and the MACD oscillator.
In this daily Point and Figure chart of U, below, we can see a downside price target of $20.
In this weekly Point and Figure chart of U, below, we can see a target of $20 also.
Bottom-line strategy: There are three types of analysis -- fundamental, technical and quantitative. None of these approaches are perfect so do not think I live in a glass house. I have recommended buying stocks that gapped sharply lower the next day. Not fun. Meanwhile, let's avoid the long side of U.
