Sotheby's (BID) quantitative downgrade to Hold by TheStreet.com's quant service today does not go far enough in my opinion. I am more bearish so let's put down our paddles and check the charts and indicators.
In this daily bar chart of BID, below, we can see a decline from June to December followed by a neutral or sideways trading range. This sideways pattern does not show me signs of accumulation and a bounce in April failed around the declining 200-day moving average line. BID is also below the declining 50-day moving average.
The daily On-Balance-Volume (OBV) line declined with prices from June to December, telling us that sellers of BID were more aggressive. This year the OBV line has been neutral.
The Moving Average Convergence Divergence (MACD) oscillator is in a sell mode or configuration below the zero line.
In this weekly bar chart of BID, below, we can see that prices peaked twice in the $55-$60 area in 2017 and 2018. The 40-week moving average line is in a downtrend and there does not look to be much support below the market in the $35 area.
The weekly OBV line has been softening the past two months and suggests that sellers have become more aggressive.
The weekly MACD oscillator has been below the zero line since August and has recently narrowed towards a fresh sell signal.
In this Point and Figure chart of BID, below, we can see a potential downside price target of $30. A rally to $45 is needed to turn the chart bullish.
Bottom line strategy: A weak close below $36 will refresh the downtrend in BID and open the way to further declines in the $30 area. Another quantitative downgrade would not be a surprise to me.