Ally Financial's Charts Have Struggled for Months

Ally Financial (ALLY) is scheduled to report its latest quarterly numbers ahead of the opening on Friday. Let's look at the charts and indicators.  

In this daily bar chart of ALLY, below, we can see that prices may have peaked back in early June. Prices made an attempt to break out to new highs in October but it failed and ALLY made a new low in December. Prices are testing the rising 50-day moving average line and trade below the cresting 200-day line.

The On-Balance-Volume (OBV) line shows a long decline from early June and tells us that sellers of ALLY have been more aggressive for months. The OBV line shows some improvement from December but not enough in my opinion to move the needle.

The Moving Average Convergence Divergence (MACD) oscillator is slightly above the zero line but crossing to the downside. Not much in the way of trend strength here. 

In this weekly Japanese candlestick chart of ALLY, below, we can see a potential bearish engulfing pattern that could mark a top reversal for ALLY. Prices are trading below the 40-week moving average line. The weekly OBV line has been stalled since May. The MACD oscillator is just below the zero line but trying to cross to the upside. 

In this daily Point and Figure chart of ALLY, below, we can see a potential upside price target of $61. A trade at $48.06 could weaken the picture.

Bottom line strategy: I have no special knowledge of what ALLY will report to shareholders Friday, but the charts and indicators do not present us with a compelling reason to buy. 

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