Summary
This hasn’t broken out of its Stage 2 uptrend, but it did close below it. I don’t like that big volume drawdown on 12/28/22 which really made a mess of the contraction count. Also, it closed below its 50-day MA and closer to the lows of the day. There is no separation between the 150 and 200-day MA’s, which shows lack of strength, as well as its RS within the Energy sector deteriorating. It still has some hope but looking pretty weak. I’m removing it from my main watch list but will keep an eye on it in my secondary list.
Stage Analysis
On the weekly, it has closed below the Stage 2 uptrend support, but hasn’t really broken out of it. Also, it is still above its 30 and 40-week MA’s. Even though, there is no separation between those MA’s which would be a sign of strength.
Technicals
I don’t like that drawdown on 12/28/22 on big volume, closing close to the lows of the day. It was shaping up well until then. As a result, it has closed below its 50-day and is still lingering there. Also, similar to the stage analysis there is no separation between the 150 and 200-day MA’s. The RS within the Energy sector has fallen below 50%, which still isn’t bad, but definitely weakening.
