'The Assassin' Fahmi Quadir Takes Aim at Adtalem Global Education

Short seller Fahmi Quadir, known as "The Assassin", is reportedly targeting shares of Adtalem Global Education (ATGE) , calling the firm "a toxic byproduct of an imperfect higher education system." Adtalem is the successor to DeVry University, a for-profit education company.

ATGE has refuted Quadir's allegations but shareholders and others seem to be sellers at this point in time. Let's check the charts and indicators.

In this daily bar chart of ATGE, below, I can see that prices have recently turned lower after making a slight new high. Prices have already closed below the rising 50-day moving average line. The rising 200-day moving average line intersects down around $46.50.

The On-Balance-Volume (OBV) has been weak since the middle of December. The Moving Average Convergence Divergence (MACD) oscillator has been weak since early November is only slightly above the zero line.  

In this weekly Japanese candlestick chart of ATGE, below, I see a mixed picture. Prices have risen three fold from their early 2022 low but a top reversal pattern is now showing in January. ATGE trades above the rising 40-week moving average line. The weekly trading volume is neutral.

The OBV line has turned up from a low in September. The MACD oscillator is above the zero line but it has narrowed significantly in recent weeks and could soon cross to the downside. 

In this daily Point and Figure chart of ATGE, below, I can see the early decline in the stock price Tuesday and a potential downside price target in the $34 area. 

In this weekly Point and Figure chart of ATGE, below, I can see the same $34 downside price target. 

Bottom line strategy: I have no special knowledge of the allegations against ATGE, but the price action Tuesday is not encouraging. Avoid the long side of ATGE. 

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