CMS Energy (CMS) Showing Signs Of Being A Roof Leaker

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified CMS Energy ( CMS) as a "roof leaker" (crossing below the 200-day simple moving average on higher than normal relative volume) candidate. In addition to specific proprietary factors, Trade-Ideas identified CMS Energy as such a stock due to the following factors:

  • CMS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $61.8 million.
  • CMS has traded 430,775 shares today.
  • CMS is trading at 4.24 times the normal volume for the stock at this time of day.
  • CMS crossed below its 200-day simple moving average.

'Roof Leaker' stocks are worth watching because trading stocks that begin to experience a breakdown can lead to potentially massive losses. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock may then be subject to emotional selling from investors that can continue to drive the stock lower. Regardless of the impetus behind the price and volume action, when a stock moves with weakness and volume it can indicate the start of a new, potentially dangerous, trend.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in CMS with the Ticky from Trade-Ideas. See the FREE profile for CMS NOW at Trade-Ideas

More details on CMS:

CMS Energy Corporation, through its subsidiaries, operates as an energy company primarily in Michigan, the United States. The company operates in three segments: Electric Utility, Gas Utility, and Enterprises. The stock currently has a dividend yield of 3.7%. CMS has a PE ratio of 15.4. Currently there are 5 analysts that rate CMS Energy a buy, no analysts rate it a sell, and 5 rate it a hold.

If you liked this article you might like

Bullish and Bearish Reversals for the Week

Roger Ailes, Biogen Shake-Up and Other Notable CEO Departures of 2016

CMS Energy (CMS) Stock Price Target Lifted at KeyBanc

Today's Water-Logged And Getting Wetter Stock: CMS Energy (CMS)

Walgreens Ends Partnership With Theranos, Will Close Care Centers