Market Overview

Despite Recent Weakness, American Outdoor Brands Could Be Headed Higher


VantagePoint Trading Software is a forecasting tool that uses both end of day data and artificial intelligence to provide traders a forecast of market movement. These forecasts are 1-3 days in advance and help traders improve their timing on making trades and maximizing profit potential. The artificial intelligence software forecasts market movement for stocks, futures, forex, ETFs, and cryptocurrencies. 

The VantagePoint Trading Journal On American Outdoor Brands

American Outdoor Brands Corp (NASDAQ: AOBC) has seen better days than 2018. With the national conversation around gun control simmering to boiling point, America's second largest gunmaker has felt the pain, losing over 66 percent of its value since August 2016. 

Not helping matters was the company's Q3 earnings report from March 1, in which they announced earnings and sales guidance for the year far below Wall Street's expectations. According to the report, Q4 sales would miss Wall Street's $205 million estimate by $40 million, earnings per share would miss by 73 percent, and the fiscal year numbers were just as bad. 

So it's no wonder the stock has been punished. But hope may have come Thursday, in the form of an upgrade by Lake Street to Buy. According to the report, Lake Street believes "the firearms industry is bottoming," and  "consumer activity could stabilize or actually show growth." AOBC close up 4 percent on the news. 

But looking at the chart, the stock appears to have formed a bottom and entered into a bullish trend. The chart below, from VantagePoint, shows this. You can see how on April 2nd there was a crossover of the software's predicted three-day moving average (blue line) over the stock's simple 10-day moving average (black line). This is a bullish signal, and even though that was followed by immediate weakness, Thursday's higher price action indicates that the uptrend is still there. 

Note the red-green Neural Index at the bottom of the chart. That shift to green on Thursday tells us to expect the stock to move higher in the next 48 hours. The grey candle on the far right side of the chart is Friday's predicted range. 


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