Shares of Bobblehead Maker Funko Are Shaking Their Head No, No, No

Funko (FNKO) was downgraded to a 'Sell' recommendation today by TheStreet.com's quantitative service. Funko makes licensed pop culture products like collectible bobbleheads. In addition, the company produces licensed plush, action figures, and electronic items. The stock price has suffered since an island reversal in September.  

In this daily bar chart of FNKO, below, we can see that prices have been under selling pressure the past five months or so with downside price gaps and heavy volume. Prices are below the declining 50-day moving average line as well as the declining 200-day moving average line.

The On-Balance-Volume (OBV) line has been very weak since the middle of September and tells us that sellers of FNKO have been very aggressive and anxious to liquidate their long positions.

The Moving Average Convergence Divergence (MACD) oscillator has been bearish since late September. 

In this weekly bar chart of FNKO, below, we can see a bearish picture as prices have broken below the late 2018 low. Support is old and not likely to be reliable. Prices are below the declining 40-week moving average line.

The weekly OBV line has been in a tailspin for two years as sellers have been more aggressive. The MACD oscillator peaked in 2018 and is still bearish. 

In  this Point and Figure chart of FNKO, below, we can see that the software is projecting a potential downside price target around $1.00 Ouch. 

Bottom line strategy: Collectible bobbleheads may or may not be worth owning, but the stock - FNKO - is a non-starter. Avoid. 

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