Although the major indexes have held up well late in the year, it’s possible to identify weak spots in the mix. The five stocks mentioned below (with price charts) have all recently shown weakness by dropping to below former price support levels — those spots where buyers had previously overcome sellers.
5 Stocks With Drops Below Former Price Support
Resmed (NYSE: RMD)
The stock chart seems to have developed a head-and-shoulders pattern, said by some analysts to signal lower prices. This seems to have developed as the price in December dropped to below the early October and mid-November lows, designated by the red dotted line.
The medical instruments and supplies company has a market capitalization of $34 billion and it’s a component of the S&P 500.
Conoco Phillips (NYSE: COP)
The huge, well-known oil company in December dropped below the red dotted line that connected the August, September and October lows. Note that the 50-day moving average crossed below the 200-day moving average in early July. The late December bounce is less than impressive.
Conoco Phillips has a market cap of $125 billion.
NetStreit (NYSE: NTST)
It’s been a rough December for this real estate investment trust that focuses on retail operations. The red dotted line connects the August low with the early November low and you can see how this month NetSTREIT’s price dropped below the former lows with force. The 50-day moving crossed below the 200-day moving average in August.
The REIT is a Russell 2000 component and has a market capitalization of $1.13 billion.
NXP Semiconductor (Nasdaq: NXPI)
Not every semiconductor stock is holding up as well as Nvidia. This one, for example, last week dropped below the late April low and has now bounced back to just above it (big red circle). In late September, the 50-day moving average crossed below the 200-day moving average (tiny red circle).
Netherlands-based NXP is a component of both the Nasdaq 100 and the S&P 500. The market cap is $54 billion.
Xerox (Nasdaq: XRX)
The well-known name from a former “hot tech” era is attempting to bounce from the late October/early November new low. That drop took out the early August support level. The 50-day moving average crossed below the 200-day moving average in May, a signal of the weakness about to unfold.
Xerox Holdings is a Russell 2000 component with a market capitalization of $1.14 billion. The stock sells at a 13% discount from its book value.
Stats courtesy of FinViz.com. Charts courtesy of Stockcharts.com.
More analysis and commentary at johnnavin.substack.com.
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