There are thousands of listed companies, and frankly I don't pretend to know them all, but Edgewell Personal Care (EPC) - Get Report was downgraded Thursday by TheStreet's quantitative service, so naturally I looked at the charts of EPC.
In this daily bar chart, below, we can see a downtrend in force as EPC has made lower highs and lower lows. Prices are trading below the declining 200-day and 50-day moving averages, which recently turned down again. The On-Balance-Volume (OBV) line has been in a downtrend the past 12 months and tells us that sellers of EPC have been more aggressive than buyers for months. The Moving Average Convergence Divergence (MACD) oscillator just turned down (again) below the zero line for a fresh outright sell signal.
In this weekly bar chart of EPC, below, we can see how prices have spent a lot of time the past two years below the declining 40-week moving average line. There is some, but not a lot, of chart support in the $70-$69 area and that zone could be tested again. The weekly OBV line shows a decline from June 2015, but a small rise in the past three months. The MACD oscillator has been below the zero line since last August.
In this Point and Figure chart of EPC, below, we can also see a downtrend. This chart shows support at $70.15 but a downside price target of $67.29.
Bottom line: EPC is pointed lower, but the support around $70 may or may not hold. If EPC breaks support, the downside might be limited to $67. It is way too early to consider the long side of EPC, but it may be too late for the short, too.
Click here to sign up for Quant Ratings, where you can read our full report on [company name or ticker symbol] or more than 4,000 other stocks that our service rates in real time every market day. However, please note that our Quant Ratings service assesses stocks using a proprietary computer model that runs a variety of factors through quantitative and technical analysis. Ratings do not necessarily reflect the opinions of Jim Cramer or other columnists, who may use different criteria to grade stocks.
(This column originally appeared at 12:19 p.m. ET today on Real Money, our premium site for active traders. Click here to get great columns like this from Jim Cramer and other writers even earlier in the trading day.)
Employees of TheStreet are restricted from trading individual securities.