The following five stocks all appear to be headed into downtrends following recent periods of strength. All charts are from VantagePoint, an artificial intelligence platform that utilizes neural networks and intermarket analysis to predict future price action.
Some things to know about each of the charts below:
- They are all 3-month charts, with each candle representing one trading day
- The black line is a simple 10-day moving average, while the blue line is a predicted 6-day moving average, either 48 or 72 hours in advance.
- A crossover of the two lines indicates a trend change. The blue line crossing over the black is a bullish signal, while the black crossing over the blue is a bearish signal
Fossil Fossil Group Inc (NASDAQ: FOSL) had a predictive moving average crossover to the upside on May 8, the day it raised its sales outlook for the year as part of its Q1 earnings report. The stock had previously been in a period of consolidation from $12-$14, but has since blasted off to highs not seen since late 2016. The crossover of the blue predicted moving average over the black 10-day moving average has been largely supported by a green Neural Index, which measures strength or weakness in the following 24 hours. Since the crossover on May 8, FOSL has more than doubled. Omega Healthcare Investors Omega Healthcare Investors Inc (NYSE: OHI) experienced a bullish crossover on May 1, when the stock closed at $26.53. In the seven weeks since, the stock is up 19 percent. However, it does look like the trend has begun to weaken. The two moving average lines have converged in June, and the Neural Index has also shown some red days. This will be one to watch over the next week or so to see if the uptrend continues or if it reverses into a downtrend. SunOpta SunOpta, Inc. (NASDAQ: STKL) has had a very interesting month. The stock initially and a bullish crossover and broke the $7 level on May 9 after some weakness, but it wasn't until May 17 that the trend really took off. Though the stock has had some periods of weakness in the month since, it's continued to make new highs of the move and the two moving averages have yet to crossover. Until that happens, expect the uptrend to continue. Essendant Essendant Inc (NASDAQ: ESND) is the first of the stocks on this list to have actually crossed over. The stock had a bullish trend for all of May, rising 89 percent in the process, but it looks like that trend has ended. We can see that by the blue predicted moving average line crossing below the black 10-day average, and also by the Neural Index showing mostly red over the last two weeks. $14.30 looks to be the new resistance for now, so we'll be watching to see if ESND will break through that or give back the gains from May. America Movil America Movil sab (ADR) (NYSE: AMX) has been in a downtrend since April 20, during which the stock has fallen about 20 percent. It's notable that the stock has rallied over the last five trading days, especially with the Neural Index showing spots of green. AMX would need several more days of upside for this trend to fully turn around. Vantagepoint is a content partner of Benzinga
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