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Mobileye NV (NYSE:MBLY) has already been left in the cold by Tesla Motors Inc (NASDAQ:TSLA), which dumped Mobileye’s cameras from its Autopilot feature after the
and is shifting to more reliance on radar systems. Now its chart is pointing to significant downside ahead.
While Mobileye’s technicals were strong as recently as late August, September has been full of bearish signals. On Sept. 6, the Commodity Channel Index turned short-term bearish, and there were three more such signals the following Monday alone. Not only did the stock cross below its 21-day moving average, but the MACD — which tracks the stock’s shorter-term versus longer-term moving averages — turned bearish as well. And Mobileye’s Momentum indicator also turned short-term bearish, showing that the stock’s price velocity implies a weakening trend.
Tuesday’s session was similarly unkind. The Short-Term KST joined the list of bearish signals, and the stock managed to turn in a bearish Triple Moving Average Crossover. While previous signals involved longer-term moving averages, this particular one consisted of the 4-day m.a. crossing below the 9-day m.a., which in turn crossed below the 18-day m.a.
While these signals don’t carry a particular price target, they do suggest MBLY’s gap down on Monday — and again on Tuesday — was just the beginning. Mobileye bulls should tread carefully, and opportunistic traders should consider jumping in with a short trade or put option to take advantage.
powered by Recognia can help traders of all levels uncover these signals to determine the best timing to buy. Or use Profit Scanner’s technical insight to validate your own trading ideas. .
