Home > Stock Charts > Sears (SHLD) Stock Price not Done Falling

Sears (SHLD) Stock Price not Done Falling

A few days back I wrote how the long-term price trend for Sears (SHLD) was down.

Old logo of Sears

Old logo of Sears (Photo credit: Wikipedia)

Especially, looking at a shorter-term chart, SHLD looks like it going to decline further in price.

SHLD 3-29-12

What's in the basement of Sears? Could be their stock price.

SHLD couldn’t break through the overhead price resistance of $80.00+ and headed lower. As you can see on the chart, SHLD had been in an ascending price “channel”. However, today, it fell out of that channel. Furthermore, the SHLD 21-day detrended price oscillator had climbed out of its channel and now appears poised to re-enter it and decline further. This should put SHLD price back within the downward pointing Andrew’s pitchfork where it would be reasonable to think the price would continue a slow decline.

Pulling the stock chart view all the way back 5 years provides some interesting perspective.

SHLD 5-year chart 3-29-12

Long-term, SHLD price trend is down

SHLD has not been able to break through and stay above the white price resistance line. It’s pretty remarkable when you see that the line that in the first chart appears rather briefly stretches back a full 5 years.

It’s also quite interesting that SHLD, stayed below its 21-day exponential moving price average for a number of years – yes years!

The detrended price oscillator looks different on the 5-year chart. SHLD only recently re-entered the channel, but could fall back out of it again.

However, I think whether or not SHLD falls below that channel or stays within it, the more important chart feature is that white line representing overhead price resistance steadily dropping over time. Until and unless SHLD finds a way to convincingly break through that line, the long-term downward price trend remains in place.

Disclaimer: The above is for informational purposes only. This should not be considered investment advice. Any investment decisions are your own and should be made after conducting your own independent research and / or in consultation with a professional investment advisor. 

 

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