Wizard Sees Negative Outlook For David Jones

This story features HARVEY NORMAN HOLDINGS LIMITED. For more info SHARE ANALYSIS: HVN

The company is included in ASX200, ASX300 and ALL-ORDS

 

By Rudi Filapek-Vandyck

Yesterday, the TechWizard reported the technical picture for retailer Harvey Norman ((HVN)) wasn't looking pretty. Today, he follows up with an equally grim outlook for department store operator David Jones ((DJS)).

The Wizard notes both Bollinger bands on price charts for the stock are starting to widen (in tech lingo: to open up). This, he says, is usually a sign a new trend is about to commence. In light of this week's disappointing retail sales data in Australia, he thinks the new trend will be south for the stock.

The MACD indicator hasn't turned bearish yet, but the Wizard is quick in pointing out that it will only take a little more share price weakness for his favourite indicator to turn bearish.

This would confirm his view that the new trend will be negative.

The Wizard has reported he currently does not own shares in the company.

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