Today’s three big stock charts looks at the risky side of the market. AT&T Inc. (NYSE:T), Hain Celestial Group Inc. (NASDAQ:HAIN) and SYSCO Corporation (NYSE:SYY) are three of the stocks that are hitting the bearish notes today.
Each of these charts are sending signals that the bears are in charge of their intermediate-term outlooks creating selling signals for those that are holding these stocks and opportunities for those looking to short some stocks.
AT&T Inc. (T)
We hit AT&T last week because the stock looked like it was set for a dead cat bounce and what do you know? Shares of T are on the decline again and getting ready to test a critical level that is likely to result in another 5-10% decline.
- AT&T shares are trading at $38 again. This has been serious chart support for the stock from a round numbered perspective. We saw T stock hold and rally from this level last month, but momentum is clearly working against the stock this time around.
- AT&T stock’s 50-day moving average is careening lower just overhead, which is going to add immediate selling pressure if we do see a short-term rally in the stock.
- A break below $38 will move T shares into a long-term bear market for the first time since late 2015.
Hain Celestial Group Inc. (HAIN)
It almost seems unfair, the company gets out from under the U.S. Securities and Exchange Commission cloud yesterday, rallies and then gets sold off on the technical.
Hain Celestial has been mired in a bearish trend and it appears the the bears used yesterday’s strength as an opportunity to sell into strength, something that is likely to continue.
- The one-day rally took shares of HAIN right to technical resistance that reversed the stock and turned it lower.
- The following selling broke shares of Hain Celestial through the $35-level, which has been able to hold the stock as chart support. This break has technical sellers jumping on the bandwagon today and it is likely to last for weeks.
- Two weeks ago, HAIN’s 50- and 100-day moving averages crossed below the 200-day, generating a “death cross” pattern. These are often indicative of intermediate- to long-term bearish conditions.
SYSCO Corporation (SYY)
SYSCO shares are trading lower as the stock was downgraded at JP Morgan. SYY stock’s fall is ripping it through technical support levels that are going to be damaging enough that they should keep traders away for some time.
- In the last three days, SYSCO shares have broken through the 50-, 100- and 200-day moving averages. This, on increased volume as the technical traders have been growing increasingly concerned about the price shift.
- Today, SYY stock is trying to stay above $50. This round-numbered level held the stock from further selling in February, but the stock was saved by its 200-day moving average at that time.
- We may see a slight bounce from the stock as this short-term selling is generating an oversold signal from the RSI, but all-in-all, traders would be wise to sell into any strength as the technical outlook for SYSCO shares is degrading.
As of this writing, Johnson Research Group did not hold a position in any of the aforementioned securities.