Chartists like to keep things simple, and we steer away from terms such as "value" and "growth."
That said, let's take a look at these four value plays to see if the chart warrants a purchase at this time.
AmTrust Financial Services
In this daily chart of AmTrust Financial Services(AFSI) - Get Report , we can see twin peaks in the $34-to-$36 area in August and November followed by a good decline to around $24. Prices have moved sideways the past four months, but the on-balance-volume, or OBV, line has only moved up the past month. The price of AFSI appears to have stabilized, yet buyers have not become aggressive about buying it. Prices are above the rising 50-day average line and below the declining 200-day average line.
Without more signs of accumulation or aggressive buying, AFSI is probably going to trade sideways and may even drift lower.
In this daily chart of Apple (AAPL) - Get Report , we can see that prices have been in a downtrend the past 12 months. Prices are below the declining 50-day average line and below the declining 200-day line. The OBV line is pointed lower, telling us that sellers of AAPL are more aggressive.
We see no bullish divergences versus momentum, so the bulls have little to work with for now.
Apple is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. In a recent weekly roundup, Cramer and Jack Mohr, Action Alerts PLUS research director said:
We are looking forward to Apple's World Wide Developer Conference June 13 in San Francisco. We expect several aspects of the Services business to take center stage as Apple continues to diversify away from the iPhone. Given the complaints regarding Apple Music's interface and the company's focus on the product (noting on the recent earnings call that the service is reaching an inflection point), we expect to see some updates to the offering that highlight the importance of streaming. We also would not be surprised to see updates to Siri as Apple looks to integrate the technology into computers and also lay the groundwork for a personal- assistant-type product, along the likes of Amazon Echo and Google Home. All in, we continue to look ahead to the iPhone 7 launch, but we are interested to see how management highlights the outlook for the Services business moving forward at the upcoming conference.
My hat is off to anyone who could trade this chart of Bridgestone (BRDCY) . Very erratic price movements from below $16 to around $19 the past 12 months. Prices are above the 50-day average and the 200-day moving average. The OBV line is positive, but we find no bullish or bearish divergences between price and momentum to tip the scales.
I suspect BRDCY will continue to trade sideways a while longer.
This daily chart of Westlake Chemical(WLK) - Get Report is interesting. Dips into the $45-to-$40 area have been bought in January, February, April and May. The OBV line has not yet bottomed to tell us that new accumulation and aggressive buying is underway. Prices are currently testing the 50-day average but remain below the 200-day average. The slope of both averages is still bearish.
WLK needs to rally over its April highs to be a breakout from this potential bottom.