Market Overview

4 Stocks That Appear To Have Just Started Downtrends

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The following five stocks all appear to be headed into downtrends following recent periods of strength. All charts are from VantagePoint, an artificial intelligence platform that utilizes neural networks and intermarket analysis to predict future price action. 

Some things to know about each of the charts below

  • They are all 1-month charts, with each candle representing one trading day
  • The black line is a simple 10-day moving average, while the blue line is a predicted 6-day moving average, either 48 or 72 hours in advance. 
  • A crossover of the two lines indicates a trend change. The blue line crossing over the black is a bullish signal, while the black crossing over the blue is a bearish signal

Scientific Games

Scientific Games Corporation (NASDAQ: SGMS) had a bullish crossover on April 10, and in the proceeding three weeks, the stock rose over 31 percent. But it's been a different story of late, with the stock falling over 5 percent after the company's Q1 earnings per share missed Wall Street's estimate badly and they announced a replacement at CEO. 

On the chart below, the blue line is a predicted moving average 72 hours in advance. In other words, by Tuesday's close. You can see how over the last week the two lines have begun to converge. This is the first sign of an impending bearish crossover. If Monday's price holds until the close, that'll likely foreshadow a crossover on Tuesday. 

On top of that the Neural Index on the bottom of the chart has shifted to red, indicating weakness over the coming 48 hours. 

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Xerox

Xerox Corporation (NYSE: XRX) has a similar pattern as Scientific Games. The difference is that this stock may be in play for a potential takeover, either by investors Carl Icahn and Darwin Deason or private equity firm Apollo Global. As with any M&A story, this stock is entirely at the mercy of the headlines. While the stock would likely pop higher if the board agrees to a takeover, it's equally as likely that the stock would continue to fall if a deal can't be reached. 

Xerox has traded down 13 percent since Wednesday. 

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Newfield Mining

Newfield Exploration Company (NYSE: NFX) just had a bearish crossover on Friday, according to the chart. The predicted 72-hour moving average crossed below the simple 10-day moving average. If Monday's price action holds, that will serve as a confirmation the negative trend. 

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Abraxas Petroleum

Abraxas Petroleum Corporation (NASDAQ: AXAS) was quite strong for a four-week period spanning March 20-April 19. During that span the stock rose 47 percent, hitting a price it hadn't seen since January 2, 2017. But based on this chart it looks like the trend is coming to an end.

Not only did the black line cross above the blue line on Thursday, but the Neural Index has shifted to red, and Friday's price action indicates the stock will close at the lows for the week. 

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VantagePoint is an editorial partner of Benzinga. For a live demo click here.

Posted-In: vantagepointShort Ideas Technicals Previews Markets Movers Trading Ideas General

 

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