Newell Brands May Be Setting Up to Fall Further

We have not looked at the charts of Newell Brands Inc. (NWL) for four months. In early May, we concluded that, "because NWL has some overhead chart resistance and there was not a lot of aggressive buying in the weeks and months before the gap, I tend to believe that prices are going to struggle and trade sideways to lower before NWL can muster the technical strength to break out to new highs." We now have the benefit of hindsight to see how that strategy worked out.

In this daily bar chart of NWL, below, we can see the upside price gap back in early May. Prices stalled in the next three months, and then turned lower as the end of July approached. In the past six weeks, the gap has been filled -- or the market has given back all the prior gains. Can NWL rebase in the mid-$40s or is it at risk for further declines?...181 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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