Market Overview

Bollinger Band Breakdown For These 3 Stocks

Bollinger Band Breakdown For These 3 Stocks

There are a countless number of metrics and chart indicators that technical analysts use to determine buy and sell signals in the stock market. One of the more popular tools available is Bollinger Bands.

Bollinger Bands were developed by famous trader John Bollinger. Bollinger bands consist of a dotted simple moving average (typically a 20-day average) and then a solid upper and lower boundary line plotted two standard deviations above and below the dotted line.

Technicians use a number of different Bollinger trading techniques, but here are three stocks that recently broke above their lower Bollinger boundary, a bearish short-term signal.

American Express Company (NYSE: AXP)

Disappointing Q4 earnings and 2016 guidance has sent American Express crashing below its lower Bollinger boundary.

Related Link: 3 Bullish MACD Crossovers In A Brutal Market

Lee Enterprises, Incorporated (NYSE: LEE)

It may be too early to call Lee’s dip below its lower Bollinger band a breakdown, but with the bands pinched as tightly as they currently are, traders should be watching for a big move in one direction or the other soon.

Tutor Perini Corp (NYSE: TPC)

Tutor Perini’s horrendous start to 2016 continued with a huge down move this week, and the stock has ow spent a large portion of January below its plummeting lower Bollinger boundary.

Disclosure: the author holds no position in the stocks mentioned.

Posted-In: Bollinger BandsEducation Technicals Top Stories Trading Ideas General Best of Benzinga


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