The last time we looked at WestRock Co. (WRK) was back on January 2nd and a lot has changed since then. Let's see what the charts look like now.
In this daily bar chart of WRK, below, we can see that prices displayed some strength to the middle of January and then turned lower. We would have been stopped out on the way down. Now that prices reached a low in the middle of March, what do the indicators look like?
Prices have been crossing above and below the declining 50-day moving average line. The 200-day moving average line has been in a decline and is comfortably above the price action.
The On-Balance-Volume (OBV) line has been in a decline from February with only temporary bouts of strength.
The Moving Average Convergence Divergence (MACD) oscillator is showing little in the way of trend strength.
In this weekly bar chart of WRK, below, we can see a longer-term decline. Prices are below the declining 40-week moving average line. The OBV line is not promising and the MACD oscillator struggled to generate a cover shorts signal.
In this daily Point and Figure chart of WRK, below, we can see that the software is projecting a possible downside price target in the $14 area. Ouch!
Bottom line strategy: It is interesting how much the charts have changed in six months or so - and not for the better. I find nothing in the charts and indicators to attract me to the long side. Avoid.
