Chart of the Day: Our Latest Bullpen Stock May Soon Offer a Nice Entry Point
Here's when we could add this new name to the portfolio.
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The stock of Bullpen name TreeHouse Foods THS has us very interested. The chart shows a stock that is moving sideways, but after a severe drop earlier this year it is best to see how the price action resolves.
Sitting just below the lows from that big candle in mid February, THS is building a nice base, but clearly it would be far too early to add this position to the portfolio.
The indicators are simply in neutral right here, the MACD (moving average convergence divergence) is actually bearish but drifting. This indicator tells us of a change in trajectory before it actually happens.
Further, stochastics (momentum) is flat while the RSI (relative strength index) is trying to rise up. Yet, we notice in the top pane the candles are purple, and that is a bearish indication on the GoNoGo indicator - hence, NoGo!
Lastly, the price is just below the channel drawn in the top pane. That is resistance for now, but back into the channel might get us interested.
We'll continue to watch this name from the bullpen for an opportunity to add shares down the road.
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At the time of publication, TheStreet Pro Portfolio had no position in the securities mentioned.
