Another Luxury Brand Hits the Skids. Is There a Substitute?
This high-end auto stock is having a mid-life crisis.
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Porsche POAHY lowered their forecasts Tuesday and blamed it on aluminum alloy supply affecting production, but sales trends have been slipping and disappointing. Porsche's most important market is China and it looks like it is in a slump.
Let's check out the charts for further clarity.
In this close only line chart of POAHY, below, I can see a weak-looking chart. The shares are below the declining 50-day and 200-day moving average lines.
The On-Balance-Volume (OBV) line is weak and the Moving Average Convergence Divergence (MACD) oscillator is bearish.
In this weekly line chart of POAHY, below, I can see that prices have been in a longer-term decline. The shares trade below the negatively sloped 40-week moving average line.
The OBV line is bearish and so is the MACD oscillator.
In this first weekly Point and Figure chart of POAHY, below, I can see that the shares have reached and exceeded a price target of $5.50.
In this second weekly Point and Figure chart of POAHY, below, I used the Average True Range (ATR) to generate a price target. Here it's suggesting a target in the $2.88 area.
Bottom-line strategy: I am past my mid-life crisis so I am not really interested in owning a Porsche. I am also not interested in recommending purchase of the shares of this company.
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