Intuit’s Chart Signals Shift to Intermediate Downtrend

by Sam Collins | February 7, 2014 1:19 am

Intuit (INTU[1]) — This company provides business and financial management solutions for small businesses, consumers and accounting professionals.

Earnings are expected to increase 11% in fiscal 2014, ended in July, but the stock is currently selling at 20 times estimated earnings in an industry that is only modestly increasing its revenues.

INTU topped out above $77 in mid-January following a run from around $64 in late August. It has broken its near and intermediate support, and the 20-day moving average has crossed the 50-day moving average, signaling a shift to an intermediate downtrend. 

Sell INTU short at $72 or higher with an intermediate target of $64. Short-sellers should place a stop-loss order at $75. 

Short-selling is a speculative technique and not suitable for all investors. Check with your broker for any special requirements before shorting this stock.

INTU Chart
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