The following stocks are currently in the midst of various stages of downtrends according to VantagePoint, an AI charting platform that uses intermarket analysis and artificial intelligence to predict future price action 1-3 days in advance. For a more detailed look at VantagePoint's charts, click here.
A couple of things to know in order to understand the charts below:
- Each chart is a 3-month chart. Candles represent one day of trading
- The blue line is a predicted moving average, and the black line is a simple 10-day moving average
- When the blue line crosses above the black, that's a bullish signal. When the black crosses over the blue, that's bearish
Square Inc (NYSE: SQ) has ripped in 2018, rising 140 percent year-to-date. But the stock appears headed for some near-term weakness. Not only has the blue line completely converged with the black line, but the neural index at the bottom of the chart is squarely (no pun intended) in the red and has been for several days. Square closed down nearly 4 percent on Wednesday.
Regeneron Pharmaceuticals Inc (NASDAQ: REGN) was in a strong uptrend from May-August, rising over 40 percent over the summer. But that trend looks to be clearly over, as the stock has now fallen $40 in September. According to VantagePoint, the bearish crossover finally happened on Sept. 12, though the neural index had been red for some time indicating upcoming weakness. REGN close down 0.8 percent on Wednesday.
Encompass Health Corp (NYSE: EHC) had been in a steady downtrend since a bearish crossover on Sept. 5, but the stock had a big red candle on Wednesday that has clearly accelerated the trend. The stock had traded down about 1 percent in the last week before a 3.75 percent drop on Wednesday. Expect the blue line to diverge further away from the black in the coming days as this trend picks up steam.
Copart, Inc. (NASDAQ: CPRT) took a nearly 15 percent haircut on Wednesday after the company's Q4 EPS came in below Wall Street estimates. This downtrend started on Friday however, and the subsequent red candles has led VantagePoint to call a bearish reversal in the stock. With Wednesday's session in the books, CPRT has now given back 4 months of gains in one week.
Abercrombie & Fitch
Abercrombie & Fitch Co. (NYSE: ANF) gaped down hard after its Q2 earnings report, despite reporting earnings per share above analyst estimates. That was the beginning of the stock's downtrend, as the stock has now traded down 26 percent since August 29. In that time, VantagePoint's indicators have only hinted at continued downside, as the two moving averages have diverged further and the neural index has stayed firmly in the red. ANF closed up 3.4 percent on Wednesday.
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