Skip to main content

FLIR Systems Looks Long-Term Overbought

When it has given similar signals, it has pulled back significantly.
  • Author:
  • Publish date:
Comments

What a great weekend -- for me, it was a great hike in the desert, since the weather in Arizona hasn't changed much. I still found time to review the charts of the stocks on my long-term overbought signal list.

FLIR Systems (FLIR) caught my eye. After it made a 52-week high on Friday and then closed down on the day, it triggered a long-term overbought signal.

Let's look at how FLIR had traded after it generated previous long-term overbought signals.

FLIR Daily

StockCharts.com

View Chart »View in New Window »

  • The Jan. 22, 2014, signal: FLIR fell 13% to the Feb. 7 low at $29.63.
  • The March 6, 2014, signal: FLIR pulled back more than 3% to the March 20 low at $34.08.

FLIR is back to long-term overbought now, and $35.52 (the .236 retracement level) is first support.

I would look to be a scaled seller with first support about 3% from Friday's close (at $36.56).

If this pullback is similar to the January selloff, then the buying zone at $33.39-$32.58, would be out of reach.

Berman had no positions in FLIR at the time of publication.