On Is Having Problems Holding on to Gains
Let's check out the charts and indicators.
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On Holding AG ONON is a Switzerland-based company that provides footwear and sports apparel and is engaged in developing and distributing performance sports products.
Traders are selling shares Tuesday morning in reaction to the company's disappointing Q4 earnings numbers.
Let's check out the charts and indicators.
In the daily bar chart of ONON, below, I can see that the shares gapped lower to start Tuesday's session. ONON is below the 50-day and the 200-day moving average lines.
The daily trading volume has been choppy the past year. The daily On-Balance-Volume (OBV) has weakened since early August and tells me that sellers of ONON have been more aggressive than buyers.
The Moving Average Convergence Divergence (MACD) crossed to the downside in early March for a take profit sell signal.
In the weekly Japanese candlestick chart of ONON, below, I have to imagine today's decline. A retest of the $25 area looks possible. The shares are trading below the 40-week moving average line.
The weekly OBV line shows a choppy sideways pattern since last March. The MACD oscillator is slightly above the zero line.
In this daily Point and Figure chart of ONON, below, I can see Tuesday's decline with no price gap. The shares have reached and exceeded a downside price target in the $29 area.
In this weekly Point and Figure chart of ONON, below, I can see that the software is projecting a potential downside price target in the $20 area.
Bottom-line strategy: After buying a pair of Hoka sneakers I am open to checking out On Holding products but I will take a pass on shares of the stock for now.
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